Identifying the Untapped Opportunities with Market Entry Strategies
About the Client
The client is a leading automotive manufacturer, established in North America. They employ over 4,500+ people and are planning to expand their services across Europe regions.
The Business Challenge
Empowered by digitalization and innovation, new competitors in the automotive market are challenging traditional business models. For automotive manufacturers to be part of this emerging markets in the future, they must radically change the landscape of their business processes and systems, and be productive, cost relevant, and more responsive to the changes in the automotive market.
Moreover, as domestic markets have become saturated, major automotive players are turning their attention to foreign markets to increase their market share, revenues, and their profits. To move forward with an international expansion strategy, automotive companies need to be clear about the target market and market entry strategies methods.
Top Challenges Faced by the Automotive Manufacturer
Problem Statement 1
As the client was looking to expand their services across Central Europe, they wanted to gain deep insights into demographics, lifestyle, common interests, and needs of the people in the Central Europe regions. The initial objective of the client in leveraging market entry strategies engagement was to figure out the market needs of their target customers.
Problem Statement 2
The client realized that inadequate market research would result in sales losses for their company. With Infiniti’s market entry strategies, the client wanted to develop an in-depth understanding of market growth rates, forecasted demand, competitors, and potential barriers to entry.
Problem Statement 3
Another objective of the client was to analyze the competition in their target market. According to the client’s perception, most businesses that tend to underestimate the degree of competition existing in the foreign markets face failures. With Infiniti’s market entry strategies the client wanted to get suggestions and recommendations from the experts in mitigating the barriers to entry in foreign markets.
Problem Statement 4
The client was unsure of their way to enter a new market; whether they should avail the services of a distributor or an agent located there or if they should become a franchisee or so. Using robust market entry strategies, the client wanted to figure out the mode of entry into the market.
Problem Statement 5
With Infiniti’s market entry strategies, the client wanted to figure out the capital requirements for entering into the new market.
Problem Statement 6
With market entry strategies, the client wanted to address issues pertaining to the sales channels and the marketing practices and formulate a go-to-market strategy to scale their business prospects across emerging markets.
Solutions Offered and Value Delivered
To help the client tackle the market challenges, the experts at Infiniti Research developed a robust market entry strategies engagement. The market entry strategies process revolved around the following phases:
Phase 1: Defining market size
The initial phase of market entry strategies process revolved around evaluating the market size and determining whether there’s a scope for growth. Based on primary and secondary research data, the experts at Infiniti Research analyzed the automotive products market in Central Europe to identify the market drivers and trends of the industry and estimate the size of the demand and supply. By triangulating the demand and supply side market size, they estimated the CAGR of the automotive products market for the next five years. Then, further segmented the market and estimated the market size of automotive products by type and application.
Phase 2: Determining market entry mode
To identify the best route to enter the Central European market, we assessed the competitors. Furthermore, by evaluating the advantages and disadvantages of various market entry strategies, the experts at Infiniti concluded that a direct import via a distributor partner would be the most suitable route for the client to enter the foreign market.
Phase 3: Identifying the potential partners
As achieving desired business goals requires support from people who understand the local market, the thirds phase of market entry strategies process revolved around identifying the right business partners for the client.
With market entry strategies, the experts at Infiniti Research helped the client to identify the right partners using a three-stage methodology.
- Longlisting – We identified over 150 market players, including sales, marketing and distribution companies that deal in automotive products.
- Shortlisting – A list of potential partners were classified based on criteria such as the type of business, web presence, type of automotive products, and so on.
- Prioritizing – Using a proprietary index and weighting methodology, our experts prioritized a list of companies with high potential.
This phase of market entry strategies process helped the client to identify the right partners, such as financers, distributors, suppliers, and marketing agency to support their service.
Phase 4: Product launch strategy
Product launch strategy benchmarked the client’s existing products across various parameters such as price, unique selling proposition, customer needs, and so on. Based on select parameters, Infiniti Research recommended a few automotive products that the client should launch first.
Through Infiniti’s market entry strategies research insights, the client was able to get a better understanding of the automotive market and identify the untapped opportunities. With our market entry strategies, they were also able to identify and recruit the right importer and distributor to ensure a smooth entry into the new market and define a product strategy.
Gain detailed insights into the target markets and formulate a go-to-market strategy. Request a FREE proposal to leverage Infiniti’s market entry strategies!
What is market entry strategy?
Extending your business into a new market can be a powerful means to leverage your core business for growth. But it takes a disciplined process to precisely assess the potential of each growth opportunity. By precisely investing an appropriate level of resources in market analysis, selection, and entry method, businesses can create a foundation for success in the chosen market. Robust market entry strategies assess the opportunities and risks of a new market and ensure a smooth entry.
How to enter a new market?
Given our expertise in formulating go-to-market strategies for global corporations, we’ve outlined the market entry strategies steps that are most critical for success while entering a new market.
Set clear objectives: Be precise about what you want to achieve in your new market, including the level of sales you expect to reach. Also, with market entry strategies, obtain a closer perception of what’s driving growth in the market, the competitive aspect, competitor market share, and the governing environment to make a sound estimate of the market potential.
Do thorough market research: The insights gained through market entry strategies and market research processes will enable you to make strategic business plans and distinguish gaps in the market and design a product accordingly.
Analyze competitors: A detailed competitive analysis will help you make key decisions and it enables you to modify your product or service to customize for that market.
Choose market entry mode: In market entry strategies, it’s a good practice to evaluate previous entries by other players in your target market when determining the best route to reach your audience.
Determine which product to launch first: As the customers often recognize the brands by their first product. It’s important in market entry strategies to choose one that immediately resonates with your target audience and showcases your unique value proposition.