Tag: international market entry

Market penetration strategy

Market Penetration Strategy for a European luxury beauty and personal care brand

The US is currently one of the largest markets for beauty and personal care products. In addition, this industry is now growing at a steadier and faster pace in the US when compared to other countries in the world. The lucrative opportunities in the US beauty and personal care sector is prompting several foreign players, especially European companies, to venture into the market. Furthermore, there is an increasing demand for luxury and premium products among American consumers. With ample market opportunities and a robust growth trajectory fueled by the premium segment, the US is now an attractive growth priority for premium beauty brands to expand its global footprint. By leveraging a strong market penetration strategy, businesses can gain a comprehensive understanding of the pros and cons of a new market and become fully equipped to establish their business in a foreign country.

You are just one step away from successfully establishing your business in a new market. Request a free proposal to know how our market penetration strategy for business can help you achieve this.

Business challenge

The client, a European luxury beauty brand retailer, wanted to expand their business into the United States. Although the market for luxury beauty products in the United States looked promising, the client wanted to understand in detail the key challenges and opportunities that the market has to offer before making a move towards market entry.

As the company’s core business is into luxury retail, it is a no-brainer that it would be challenging to appeal to all the customer segments equally. So, with Infiniti’s market penetration strategy, they wanted to understand the demographic conditions in the US and group different customers based on the most profitable segments. Through this, they wanted to gain a better understanding of which customer groups to target for their product marketing strategy and identify the best channels to do so. The European luxury beauty brand retailer also sought to gain an idea of the best distribution models and investment capacity in the US using our market penetration strategy solutions.

An effective market penetration strategy is all you need to win over your target audience. Get in touch with us our experts to know how we can help you formulate an ideal market penetration strategy for your business.

Key challenges in the US luxury beauty market 

market penetration strategy

Highly competitive market – The luxury personal care and beauty market in the US is more consolidated when compared to that of Europe. Unlike the European luxury segment, in the United States, the top 10 companies collectively own a greater share of the premium market segment. This relative consolidation leads to fierce competition and has a major influence over the coveted share of finite shelf space at key retailers.

Distribution channel mix – Due to significant competition and product proliferation, distribution channels play a critical role in both the market entry strategy and growth potential of beauty brands entering the US market. The fundamental difference in the distribution channels here is that US markets demand a localized distribution strategy, which is critical for the growth of European brands in the US marketplace.

Changing consumer preferences – Consumers’ increasing preference for plant-based, organic, and natural beauty products have spurred investment and innovation as companies to capture market share in this growing category. Natural products appeal to modern consumers, both from ethical considerations (concern for environment and sustainability) as well as health concerns (fear of harmful ingredients).

Solutions offered

With over 15 years of experience in serving various industries across the globe, the experts at Infiniti Research helped the client to devise an efficient market penetration strategy to enter the US luxury beauty and personal care market.

  • A thorough market entry research was undertaken to help the client understand the demographic segmentation and demand patterns in the market and plan their market penetration strategy accordingly.
  • As a part of the market penetration study, Infiniti helped the client formulate a comparative market analysis was provided to the client to help them understand the strategies of their key competitors in the US. They were also able to gain insights on the core difference between consumer groups and demand patterns in the European and US markets. This helped them identify the best promotional activities that are more likely to work with their target audience in the US.
  • During the course of the market penetration strategy study offered to the client, we identified the different modes of distribution that can be chosen by the client to quickly leverage local resources, networks, and market knowledge with minimal investment.

Results obtained

Based on our market penetration strategy and insights, the client gained a detailed understanding of the market demographics and competitive scenario in the US luxury beauty and personal care market. They also developed a detailed understanding of the attractiveness of market opportunities for their product and service offerings. The European luxury beauty and personal care retailer was also able to devise a market penetration plan to establish a foothold in the US. Also, with the help of our market penetration strategy analysis, they were able to better understand the current and future market potential, make effective targeted promotions to attract customers, and thereby successfully plan their market entry into the US.

Learn more about the importance of a market penetration strategy for your business

Market entry barriers

Market Entry Barriers to the Chinese Pharma Industry

Although expansion into emerging markets is vital for pharma companies to ensure continued growth, both cultural and economic market entry barriers can pose problems. China is one of the most lucrative markets for pharma companies across the globe. China’s growing middle class and an ageing population mean new opportunities for companies to widen their portfolio in this area. However, entrants into the Chinese market encounter several challenges while expanding their operations effectively in the country. For Western companies seeking a foothold in the pharma industry in China, our experts have identified some of the key market entry barriers in the Chinese pharma market and ways to overcome them.

Want to break free from market entry barriers and establish yourself in a new market? Request a free proposal to know how our solutions can help your business.

Chinese market entry barriers

market entry barriersIdentifying untapped market potential

The scale of the country could prove to be one of the key market entry barriers for pharma companies planning to enter the Chinese market. So far, the main focus for pharma companies has been on Tier 1 and Tier 2 cities, those with a population of over 2 million. Physicians in large hospitals in these cities have been targeted by foreign companies as a part of their market entry strategy to venture into these markets. Pharma companies must also identify ways to leverage the potential of China’s rapidly growing Tier 3 and Tier 4 cities. Mergers or joint ventures with established Chinese firms who have built up knowledge and a profile in these areas is one of the best ways to pursue this.

Overlapping demographics

China’s overlapping demographics with each of them requiring a tailored approach poses a severe challenge for pharma companies. Furthermore, inadequate knowledge of geographical and cultural differences in Chinese markets could also prove to be significant market entry barriers for companies in the pharma sector. Even two cities such as Shenzhen and Guangzhou which are in close proximity, speak different languages and represent very different social clusters. Marketing in these two cities or even the case of Tier 1 and Tier 4 cities in the country would necessarily require two separate approaches.

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Planned price restrictions

The Chinese government has recently indicated that they intend to review their current drug pricing scheme, which could increase the market entry barriers for foreign companies. They are planning to dramatically increase the number of drugs covered under the essential drugs list. China’s pharma industry is heavily weighted towards producing generics which are better placed to compete under such criteria, posing major market entry barriers for foreign companies wishing to profit from more expensive branded drugs. Foreign pharma companies can increase their profit margins by targeting consumers directly.

Supply chain

Once the drugs have made its way through the registration process, it will need to be distributed, and the fragmentation of the supply chain makes this a much more complicated process in China. Often, there are several layers of distributors to get through before reaching the customer in Chinese markets, which raises the distribution costs and also diminishes supply chain visibility, making it difficult to monitor the product once it has left the factory, contributing to further market entry barriers.

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Market Entry Strategies

Why do Market Entry Strategies Need to be Prioritized in 2019? A Round-Up of Popular Articles on Market Entry Strategies

LONDON: Infiniti Research, a leading market intelligence solutions provider, has announced the release of their FREE downloadable resources’ series on the benefits of market entry strategies. These supplements provide comprehensive insights into how market entry strategies help organizations avoid pitfalls and identify suitable pathways for navigating a new or foreign market.

Most business owners aspire to expand their business by entering into new markets. While entry to a new market may seem to be a great business strategy, most businesses fail while making a new market entry. Have you ever wondered why? The truth is, market entry strategies are extremely challenging.

Entry into an unfamiliar market can expose an organization to unexpected risks. This could further hamper the company’s growth and damage their global reputation. Hence, while planning to enter a new market, you need to take into consideration the demographics, location, and needs of the new market. It becomes imperative for organizations to leverage market entry strategies. Infiniti’s market entry strategies have helped various firms build robust route-to-market strategies.

In this competitive world, conventional experience and understanding can no longer guide future strategies. Request for a FREE brochure to learn more about our market entry strategies.

Find out how some of our clients have successfully secured a space in the new market with our market entry strategy engagement.

Weekly Round-up: A Storyboard on the Benefits of Market Entry Strategies

 

#1: 4 common market entry mistakes and how to avoid them: Global business growth can be both daunting and rewarding.  Even some of the most established companies tend to fail in their ventures to operate in an international market. The lack of industry knowledge and inefficiency in the market research efforts undertaken by the company could be some of the reasons behind the failure of businesses. In this FREE downloadable resource, our market entry strategies experts discuss the key pitfalls that hinder the growth of companies in a foreign market with some examples of lessons learnt from famous international market entry failures.

Download our FREE supplement to learn more about the most common mistakes every business makes while entering into a new market and find out how  your company can avoid them.

60% of companies fail to succeed in new markets. Is your business preparing to enter a new market? Request a FREE proposal to know how our market entry strategies can help you achieve your business goals.

#2: Potential barriers to foreign market entry: Entering a foreign market could be a highly challenging task if you have not formulated effective strategies to overcome the potential barriers. Obtaining desired business goals requires support from people that understand the local market and can deliver results within a specific period and at an affordable cost. Hence, companies are partnering with market research companies like Infiniti Research. Our experts have identified the potential barriers to market entry and strategies to overcome them. Download our latest FREE supplement to learn more.

Consider these challenges before devising international market entry strategies:

Top 3 Challenges Companies Must Watch Out for Before Devising International Market Entry Strategies

#3: Five steps to build a winning market entry strategy: In today’s competitive world, conventional experience and understanding can no longer help businesses succeed. It is vital for any business to leverage market entry strategies and be precise about what they want to achieve in new markets, learn more about the market they are entering into, have a detailed competitive analysis, choose the right market entry strategies mode, and identify financial requirements to begin their new venture. This FREE supplement from Infiniti Research explains the five critical steps that organizations must follow to build a winning market entry strategy.

CONTACT US to learn more about our market entry strategies solutions.

IR21

Weekly Round-up: A Storyboard on the Benefits of Market Entry Strategies

LONDON: Infiniti, a leading market intelligence solution provider, has announced the release of their new storyboard on market entry strategies and on how it has supported organizations in strategically entering a new market or expanding in an existing market.

With the thriving businesses all over, expanding the business or entering a new market has become a must to afloat in the business. But, you must be wondering why many companies fail to succeed overseas or while trying to expand their business? Even, despite Aussies’ deep love for coffee, Starbucks, incredibly popular in the US failed to crack the Australian market. Why is it that so? The truth is, market entries are challenging! This compels companies to leverage market entry strategies to avoid pitfalls and distinguish suitable pathways for navigating a new or foreign market.

Infiniti’s market entry strategies help companies assess the opportunities and risks of a new market and ensure a smooth entry. Given our experience in formulating go-to-market strategies for global organizations, we’ve collated some of our recent success stories on market entry strategies and have also highlighted ways in which our market entry strategies solutions have helped businesses become market leaders in new geographies.

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Uncover the secret formula to develop a successful market entry strategy!

#1: 4 secrets to creating a winning market entry strategy: Entering into a foreign market, particularly one with strict rules and regulations can be a very daunting task. Often, business owners have the ambition to go international, but they’re just not quite sure where to start! Are you facing the same challenge? If yes, figure out how to beat the odds in the international market entry with competent market entry strategies.

Beating the Odds in Market Entry with Competent Market Entry Strategies

#2: Market entry strategies facilitate profitable growth in medical devices company: With the recent technological advancements in the market, the businesses are facing difficulties to propel their business forward. Hence, companies are looking to formulate a go-to-market strategy to scale their business prospects across emerging markets. A medical devices manufacturer was going through the same hurdles with the recent advancements in the field of medical technologies. Our market entry strategies helped the company avoid cognitive biases that undermined the market entry decisions and helped expand their reach by entering key target markets.

Medical Devices Market Entry Assessment: Avoiding Cognitive Biases that Undermine Market Entry Decisions

#3: Top challenges you’ll need to overcome to succeed in international business: Foreign trade requires you to operate outside your comfort zone, but that’s where the magic truly happens in terms of flourishing, shining and realizing your business goals. Before you dive into a foreign market, you need to do some market entry research and learn about its economy, trends, consumers, policies and trade agreements to help yourself plan better. In this blog, our experts have listed out the top challenges and suggested a few measures to combat them.

Top 3 Challenges Companies Must Watch Out for Before Devising International Market Entry Strategies

#4: Identifying new growth opportunities in the market: If you’re not actively seeking out new customers or channels to grow, you’ll almost certainly miss new opportunities right in front of you. A fast-food company also went through the same dilemma. This not only affected their profit margin but provided scope for other players in the industry to expand. Hence, the client was looking to expand their business to capture a higher market share in the new segment in a more cost-efficient manner. Our market entry strategies helped them smoothly expand their business and subsequently increased sales, business stability, and brand recognition.

Market Entry Strategy: Identifying New Opportunities in the Market for a Fast Food Restaurant Client

#5: Helping develop low-cost market entry strategies to boost presence in international markets: Planning market entry strategies can be daunting. Market entry strategies necessitates a deep understanding of the market dynamics, including barriers to entry, customers, trade environment, and so on. Without these insights, navigating the business environment can be extremely challenging and can set the business up for failure. Facing a similar challenge, a leading automaker was in search of a trusted market research firm that could conduct a comprehensive market entry research study. Partnering with Infiniti Research helped the client devise an effective, low-cost market entry strategies to boost their international presence.

Business Market Entry Strategy for an Automotive Industry Player

Mastering market entry challenges are easier than you think with Infiniti’s customized market entry strategies solutions. Want to know how? Request for a FREE Proposal to leverage our market entry strategies solution.

 

#6: Personal care products manufacturer secured a space in the Russian market: This success story explains how a personal care products manufacturer was able to secure a space in the Russian market and identify the untapped opportunities based on the market entry strategies research conducted by Infiniti Research.

Market Entry Strategy Framework for a Personal Care Products Manufacturer Helps Break into the Russian Market

#7: Elevating sales and productivity for a chemical firm: In a mere span of eight weeks, Infiniti’s market entry experts were able to offer insights on the implications of entering new market segments in the chemical industry space. This market entry strategies engagement helped the client understand the factors hampering the growth of the market and make informed business decisions to enhance sales and production.

Leveraging Effective Market Assessment Solutions to Devise Market Entry Strategies for a Chemical Industry Client

#8: Driving higher sales per product for an orthodontic appliance manufacturer: While trying to expand your business, understanding if you are on the right path along the way, is just as important! Our market entry strategies solutions have made it possible for one of the leading orthodontic appliances manufacturers in assessing the sales potential of their newly introduced product. With our market entry strategies, the client was in a better position to market their products and drastically reduce time to market to drive higher sales per product.

Infiniti’s Market Entry Strategy Helps a Leading Orthodontic Appliances Manufacturer to Enter International Markets

#9: 5 step process for devising an effective market entry strategy: Developing and implementing the correct market-entry strategies can often make the difference between success and failure. As majority of organizations lack the necessary resources and skills required to accurately analyze and assess the growth potential and market landscape, our experts have proffered the five steps in devising successful market entry strategies.

Devise Successful Market Entry Strategies in Five Steps 

#10: How an IT solutions provider maximized ROI with Infiniti’s market entry strategies: The global IT services sector is highly fragmented due to the presence of several players. This is inciting IT solutions providers to leverage market entry strategies engagement to incorporate innovative technologies into their businesses endlessly. If businesses are not up-to-date with the latest technologies, it is highly likely that their operations will become outdated, putting their survival in the market at stake. Hence, by leveraging Infiniti’s market entry srategies, an IT firm determined long-term corporate plans and formulated strategies to maximize the ROI.

Market Entry Strategy Engagement: How an IT Solutions Provider Maximized ROI

CONTACT US to know more about our market entry strategies solutions.