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Keys for Success in Building an International Market Penetration Strategy

Venturing into a new market is always a ‘tricky business’. Entering markets overseas where consumers think differently, follow different cultural norms, and speak entirely different languages could prove to be extremely complicated and a daunting task for organizations. For companies seeking to venture into and establish themselves in an already competitive and culturally different market from what they currently operate in, an effective market penetration strategy is a must-have. There are several examples of even some of the top international brands who have failed to garner customer support and establish themselves in new markets despite having a strong brand name and displaying business excellence in key markets of the world. The absence of a strong market penetration strategy is one of the prime reasons for the lack of success.

Having a penetration pricing strategy could prove useful in the case of new market entry. But beyond this, there are several factors that businesses must take into consideration for reaching out to a multilingual and diverse audience. Smart brands do their homework and analyze new ways to engage local customers and undertake promotions that resonate with the audience. Here are some factors to take into account while pursuing a market penetration strategy on an international scale.

An untapped market won’t always be the right one for expansion; there are a lot of variables around brand economics, timing, and more that must be considered. Request a free proposal to know how to identify the right markets to invest in and choose an effective market penetration strategy to successfully establish your business in a new market.

International market penetration strategy

market penetration strategyFocus on demographics

It’s always a good idea to deep-dive into the demographics of a market before formulating a market penetration strategy. Businesses must gain a clear idea of how the market breaks down in terms of age, ethnicity, gender, income, and several broader census categories. Once this is done, brands must hone in on individual regions. Although population across a region are often believed to be homogenous, mostly this is not the case. Varying levels of conformity and diversity can be seen in different regions. Gaining a clear understanding of these diversities can helps brands create a successful market penetration strategy. This will also help brands craft native brand experiences that are personalized and speak specifically to a particular market or region. Consequently, helping to ensure that those messages resonate with the local customers.

Identify target customers

When a brand plans to expand its business into a new region or country, this does not mean that the entire population of that country is their target audience. Once the business gains a clear idea on the demographics of the new market, they easily identify their target customers a build their market penetration strategy accordingly. If the target market size is not estimated, then it would eventually skew the other predictions of the company, making it more difficult for their market penetration strategy to become successful.

If you’re planning to enter new markets overseas, you’re likely looking to leverage market penetration strategy s as a means of gaining a foothold. Get in touch with our experts and learn how we can help you achieve this.

Cost-benefit projections

The feasibility of the market penetration strategy to enter a new market should be estimated. Does the decision make sense financially? Will it net more revenue than the costs incurred? These are some of the key questions that businesses must have answers to before going ahead with the implementation of their market penetration strategy.


Localizing content and strategies are paramount to resonate and be accepted among local audiences in a new territory. Localization entails layering appropriate cultural nuances on top of content translation. Websites and mobile apps should be revamped to suit the taste of local audiences and are easy to use and understand for them. Any touchpoint of interaction between customers and the brand must be natural and meaningful to the target audience.

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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.

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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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Building a Strong Market Positioning Statement: What Companies Must Do

What is market positioning?

Market positioning outlines what businesses must do to market their products or services to the target customers. It involves the ability to influence consumer perception regarding a brand or its offerings relative to competitors. The primary objective here is to establish the brand identity or image in order to change consumer perception in the desired manner.

Types of market positioning strategy

An effective market positioning strategy encompasses advertising, branding, promotion, pricing, product development, and sales and distribution. Some of the common types of market positioning include:

Customer needs

This type of market positioning strategy involves identifying the company’s target customers and how they intend to satisfy customer needs. This can include the functionality of the product and the experience that they gain from using the product.

Customer perceptions

It is always beneficial for brands to capture the imagination of their customers. This not only helps create a lasting impression on the minds of the customers but also help the company to better plan their market positioning strategy.

Brand recognition

This is one of the most commonly used types of market positioning strategy wherein a brand promotes some basic visual symbols and information associated to itself in such a way that customers easily recognize the brand through these symbols/information. For instance, the logo of Mc Donald’s is unique, and its eye-catching yellow logo is enough for customers to recognize the brand.


Pricing is a primary strategy used for competition. Except for luxury goods, markets for most other goods are price sensitive, however, customers do not want to compromise on the quality. So, companies that offer goods at a lower price and with a reasonable level of quality tends to win in most markets. Furthermore, one of the key ways for brands to outperform competitors is with the superior level of quality.

Customer service

Customer services prior to, during, and after the course of purchase is one of the key factors that lead to better market positioning. Customers favor companies that offer better customer service, this is especially true in the case of goods such as electronics and automobiles wherein customers spend more time before making purchase decisions.

Being more diligent and responsive than the competition is integral for business success

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Use or application

Market positioning strategy based on the use or application of the brand involves positioning a product depending on the uses that customers can derive from that product. For instance, for several years Nescafe positioned themselves as a winter product and extensively invested in product advertisements during winters. However, the advent of cold coffee has urged them to build a market positioning strategy for summers as well. Introducing new uses and applications of a product is a measure undertaken deliberately in order to expand the brand’s market.

How to create an effective market positioning strategy?

Building a market positioning strategy is essential for businesses to identify how their brand is perceived in the market and making necessary changes to change these perceptions in the desired manner. Experts at Infiniti Research have listed out some key techniques for brands to create an effective market positioning strategy:

Determine the USP

Unique selling proposition (USP) sets a brand or its products apart from their counterparts in the market. Companies must make efforts to compare and contrast the differences with that of the counterparts in the market. Increased emphasis should be given to the strengths and how they can be leveraged to exploit the available opportunities.

Identify current market position

Analyze the company’s current market position. This helps determine if any changes are required in the current market positioning strategy. In case any changes are required, it also helps determine how new positioning will be beneficial in setting the company apart from other players in the market.

Competitor positioning analysis

Businesses must analyze the current conditions in the marketplace the amount of influence that each player in the market can place on each other. This gives a better picture of who the company is competing against in the market and what their key strategies are.

Develop effective market positioning strategy

Once the company has identified what their brand is and how they are different from competitors, the next step is to evaluate the market conditions, and other opportunities and threats in the market. This way the company has to decide how they wish to position themselves in the market.

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Beating the Odds in Market Entry with Competent Market Entry Strategies

New and emerging markets open up numerous opportunities and have limitless potential for growth. However, when to take a closer look at the annals of business history, it shows that for every successful market entry, about four fail. Interestingly, it is not just inexperienced startups that face the heat from new markets while implementing their market entry strategies, several sophisticated corporations also face the same fate. Industrial strategists at Infiniti Research agree that successful market entry strategies depend largely on factors including timing, scale relative to the competition, and the ability to leverage complementary assets. Moreover, it is vital to undertake detailed analysis and market research before entering into a foreign market.


Four Barriers You Need to Overcome Before Planning Your International Market Entry Strategies

The rising rate of globalization is prompting brands across the world to ‘think global’. In the long term, every modern business wants to expand their reach to international markets, which would eventually spike their profit and growth graphs. The lucrative scope of doing business in foreign markets are attracting many ventures, big and small, to explore these opportunities. However, while formulating international market entry strategies, chances are that a company might overlook certain barriers that might prove to be fatal for the business. Here are some of the key barriers that companies must watch out for before formulating their international market entry strategies:Contact US

Monopoly in the market

The existence of a monopoly in the market often poses as a tough barrier for companies planning to build international market entry strategies for their business. A monopolistic market situation is when one company or a group of companies hold an entire chunk of the market share, making them the primary providers of products/ services in that market. Monopolies often block the entry of other substitutes or competition in the market by using patents and licenses, controlling distribution routes, resources or suppliers, or by using pricing strategies. If companies entering a new market cannot access an efficient or cost-effective distribution system because incumbent companies have a greater control over the distribution networks, the chances of their goods or services to be successful is highly unlikely.

Market Intelligence

Top 4 Emerging Markets of 2018 and Their Characteristics

Emerging markets, aka developing countries or emerging economies, are nations who are investing extensively in boosting their production capacity. Such nations have moved away from their traditional economy, which relied solely on the export of raw materials and agriculture. Emerging economies aim to offer a better quality of life to their people and focus mostly on rapid industrialization to drive growth.  Some of the characteristics of emerging markets include their lower-than-average per capita income and high volatility. Additionally, Get More Inforapid growth and more than average returns for investors are some of the other characteristics of emerging markets.

With the growing popularity of developing countries among investors, there has been a boom in the number of published articles that shed light on the characteristics of emerging markets. This makes it tedious for stakeholders to find relevant information. However, to make life easier for investors, we at Infiniti Research, have highlighted the top four emerging markets of 2018 that are all set to become the new superpowers in the years to come. (more…)

Business Forecasting

Market Entry Advisory: Helping a Yeast Manufacturing Company to Formulate a Successful Market Entry Strategy based on Different Aspects

Effective management, corrective action, and quality inspection are of paramount importance for yeast manufacturers looking to comply with the three-stage regulations.

In the midst of rising competition from local and global manufacturers, manufacturers have been preparing for a difficult year ahead. Companies specializing in manufacturing yeast have a lot to contend with – stringent regulations, rising economic uncertainty, increasing competitors, and many more. Since food manufacturing and distribution is highly regulated, companies have to maintain complete transparency in their supply chain and must be prepared to act fast in the event of a contamination that would jeopardize the health and well-being of consumers.

Alongside the systemic challenges faced by food and beverage manufacturers globally, there are several other organizational challenges such as the ones arising due to mergers and acquisitions and regulatory compliance. However, changes in regulatory guidelines have compelled yeast manufacturers to remain compliant and deliver safe, healthy, and affordable food products to consumers.  Another noteworthy fact is that the majority of food standard legislation is set by the European Union; and with Brexit on the horizon, there are likely to be far-reaching effects that will manufacturers to change their operational procedures to comply with the new Request Proposalregulatory requirements.

The Business Challenge

The client: A yeast manufacturing company

With an objective to build a better market entry strategy, the client –  a leading food and beverage industry player specializing in the manufacturing of yeast – approached Infiniti to help them identify the current and future market scenario. The primary objective of this study was to help the client understand and analyze the level of competition in the market that they wished to enter. 

Increasing market share by adopting different strategies while entering new market segments was of prime importance to the client. Furthermore, the yeast manufacturer wanted to develop a market entry strategy based on different operational aspects to gain a stronger foothold in the new market.

Why is a market entry strategy important for yeast manufacturers?

A market entry strategy is the culmination of the planning it takes to develop a strategy on the ways to enter a new target market with a product/service offering. It includes a detailed plan on different ways to present the product, the price at which it has to be presented, to whom, and in what form. It is essential for players in this sector mainly because a precise plan helps them keep track of their goal, spot deviations, and helps firms to track their progress to know when it is time to plan further ahead.

Summary of our market entry advisory solutionyeast

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Client Journey

To help the yeast manufacturer gain insights into the competitive nature of the global food and beverage industry and help them penetrate the niche market segments, Infiniti’s market entry strategy experts carried out extensive research with leading stakeholders in the food and beverage industry space. The market entry strategy experts also gathered and analyzed information from various proprietary sources including paid industry databases, company presentations, and industry forums.

Solution Benefits and the Business Impact

With the help of Infiniti’s market entry strategy, the client was able to gain detailed insights into the market segment they wished to enter. The solution offered turned out to be a major conclusive factor that helped them in deciding whether or not to proceed with the market entry operation. Moreover, our market entry experts also recommended a pricing strategy based on regional segmentation, which the company was able to implement successfully.

The market entry strategy based solutions obtained based on extensive market research offered immense value that helped the client to formulate a successful market entry strategy with respect to:

  • Product adaptation strategy
  • Technical innovation strategy
  • Low price strategy
  • Total adaptation and conformity strategy
  • Availability and security strategy

The Future

Considering the fact that we live in an interconnected global economy, technological innovation is touted as the major driving force bringing about pervasive disruptions in several sectors including the food and beverage industry. There is a global need for yeast manufacturers to take into consideration the evolving environment to devise appropriate strategies for the future- why and how things are transforming, and how it might affect them in the near future.

A must-read case study for strategy specialists and decision makers looking to develop a better understanding of the latest food and beverage industry trends.

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