Market Entry Strategy Development

By M. Isi Eromosele

A market entry strategy that is sound gives your company a greater control of its introduction into its target market, creating launch efficiency that would deliver a framework for subsequent planning of calculated launch activities.

The key is to create a well supported and objective plan that utilizes maximum value of internal assets and investments and eventually improved competitiveness and secured revenue. The use of this approach would:

• reduce financial uncertainty that usually results from absence of complete market analysis and a structured strategic plan
• enable adequate financial planning and collaboration of business plan
• engender formulation of business case assumptions that better correspond with market conditions and the market position chosen
• create launch efficiency through a framework toward following planning of tactical launch actions
• facilitate risk management and market insight and contingency planning

New market entrants face huge pressures on market entry that is usually created by internal and external expectations. A number of these pressures can be alleviated through the development of a clear market entry strategy and effectual purposeful plans.

Internal Constraints and Expectations

It is vital that the market entry strategic plan be implemented on a tightly executed timely basis to forestall increase in market share cost and delivery of predicted financial forecasts

In order to prevent a large resource gap, launch teams should be rapidly assembled and expert expansion carried out expeditiously

It is imperative that financial objectives and growth expectations be set up before launch. As such, any unplanned market activities and launch delays will interrupt initial customer response and revenue predictions.

External Constraints and Expectations

In most cases, organizations do not have in-depth knowledge of the market they are about to enter. Neither do they have a good insight into the market drivers.

Competitors could plan preventative and disruptive actions to enhance their own market positions and secure their customer base before your company’s entry.

A structured method for developing a market entry strategy requires a comprehensive analysis of the target market. A comprehensive market analysis, using market data and customized market research allows you to assess all areas affecting your chosen strategic course, including:

Market Dynamics

Thorough market and consumer segments and full analysis of market drivers that will positively identify the most valuable targeted segments, resulting in market growth.

Distinctive segments are assessed to provide information on key market components such as retail structures, financial systems, available technologies and distribution channels.

Competitive Landscape

A wide-ranging competitive profile is carried out of such areas such as market positioning, branding, value proposition, market offerings, pricing, customer care, sales and support systems in order to properly gauge competitors’ strengths and weaknesses.

Macro-Economic Viewpoint

Precise analysis of pertinent macro-economic information is carried out to determine future market and individual segments growth.

Regulatory Framework

A complete analysis of the regulatory environment is implemented to find out how this may affect market and segment growth.

After all the necessary and detailed information has been collected, they should be merged into a complete market entry strategy as well as comprehensive tactical launch plans, allowing you to formulate a clear and differentiated market position with aligned market offering, pricing, communication, customer service as well as sales and distribution. This enables a total stakeholder buy-in and efficient implementation of the launch plan.

M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance

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