Are you considering a global or international market entry strategy?
Don’t worry; we’ll discuss every aspect in detail right here!
Entering a new market is always a bit risky, but if you plan everything meticulously and are prepared to take calculated risks, it can be possible.
Let’s first determine when you should consider entering the global market.”
I’ve made some corrections for clarity and improved sentence structure. If you have any more text to proofread or need further assistance, feel free to ask!
When should to enter the Global or International Market
Before planning to enter the international market, you must carefully strategize your entry. Here are some factors to consider before embarking on global expansion.
25% of revenue comes from the global market: If your business is already generating 25% or more of its total revenue from international markets, then it may be the right time to plan for global expansion.
Your competitor is already doing good in the International market: If your competitors in the same niche are performing well in international markets, it may be a good time to consider testing the international market as well.
Your Company making a good profit: Testing any new market always involves risks, and entering the international market is essentially a form of market testing. Therefore, if your company is not performing well enough, you may struggle to fully explore the market’s potential and gather sufficient data to make informed decisions
The stability of your product & services is good in the native market: Before attempting to enter the international market, it’s essential for your products and services to have a stable presence in your native market. If your native consumers do not respond positively to your products or services, the likelihood of failure in the international market significantly increases
Are your product and services profitable enough: If your profit margins on your products and services are insufficient, there’s a possibility that while testing the international market, you may need to raise the prices of your products and services in your native market. This could potentially harm your sales and the popularity of your products among your existing customer base.
Prior experience or expert support: It would be highly beneficial to have prior experience in the international market or to hire someone with expertise in the specific international market you intend to expand into.
Analyse market situation before expansion: Before entering the international market, it’s essential to analyze the favorable conditions within that market. For instance, during the pandemic, while many businesses faced challenges, digital businesses such as streaming platforms and SAAS-based enterprises experienced growth.
The Reason for International Expansion
Let’s explore some reasons for international expansion. There are numerous motivations for expanding your business internationally, and here are a few of them.
1. Increased revenue: A business that is thriving in its native market, operating at a large scale domestically, and enjoying significant popularity may seek to expand globally to increase its market size for products and services
2. Expanding customer base and offerings: Entering the international market can expand your market size and customer base, creating more opportunities for investment and innovation in your products and services.
3. Cost savings: Operating expenses in various emerging markets can be considerably more budget-friendly. Whether it involves production, purchasing, logistics, or recruitment, expanding internationally holds the promise of significantly reducing operational expenditures.
4. Diversify their business: International expansion can assist businesses in diversifying their customer base, supplier network, and revenue streams. This diversification can help reduce risk and enhance the business’s overall resilience
5. Gain a competitive advantage: Expanding into new markets can provide businesses with a competitive advantage over their domestic competitors. This advantage is particularly pronounced if the business can offer a product or service that is unavailable in the new market or if it can offer it at a lower price..
6. Improve their brand image: Expanding internationally can enhance businesses’ brand image and reputation. This is because businesses operating in multiple countries are often perceived as more successful and trustworthy.
7. Access to new resources and technologies: International expansion can provide businesses access to new resources and technologies not available in their home country, enhancing their products, services, and efficiency
Now Let’s discuss,
5 Strategies for International Market Entry with example
1. Content Marketing:
Content marketing is one of the most effective strategies in digital marketing. Consistently delivering valuable content online helps build recognition and trust among your audience. When people search for solutions to their problems online, your informative content can appear, instilling trust and interest in your offerings. This approach is an excellent way to educate your target audience, understand their pain points, and demonstrate how your product can be beneficial to them.
For Example, Mamaearth & Byju use this strategy to grow
Mamaearth is a well-known Indian skincare brand that places a strong emphasis on natural and toxin-free products. They have achieved remarkable growth in their marketing efforts by employing a consistent content marketing strategy.
Publishing blogs on their website and creating educational videos on various social media channels are integral components of their content marketing strategy. Through this approach, they have successfully positioned themselves as a leading natural skincare brand.
Byju: Byju also employs a similar marketing strategy to establish a strong presence in the market. Byju creates educational content and attracts customers by offering trials through online advertising
2. Social Media & Influencer Marketing:
Social media marketing and influencer marketing are incredibly powerful tools. They enable you to generate word-of-mouth marketing, establish brand authority, and build trust among customers. Additionally, these strategies have the potential to enhance your brand’s organic visibility.
Also Read: When looking to expand your business internationally on social media, what should you do first?
For Example, Lenskart & Nykaa use this strategy to grow
Both Nykaa and Lenskart effectively promote their wide range of unique products on social media and collaborate with popular niche influencers. These influencers help create relatable content, making these brands more popular and relatable to their target audience
3. Free Trial Marketing:
If your product or service is compelling enough to retain customers, offering a limited free version can encourage them to adopt it. Once they become accustomed to it, they are more likely to convert to paid users
For Example, Byju & Zoho use this strategy to grow
Byju: Byju’s is an ed-tech platform and offers their platform for trial use for users and after that users pay for their service.
Zoho Corporation: Zoho is a Chennai-based software company that offers a suite of cloud-based business applications. Zoho emphasizes a strong online presence, offering free trials, and pricing flexibility, making it accessible to businesses of all sizes.
4. Local Collaboration:
Local collaboration in business marketing is an important strategy that can offer numerous benefits, especially for businesses targeting specific geographic regions or communities.
For Example, OYO
OYO: In international markets, they collaborate with local hotel owners to provide a consistent guest experience while also adapting to local preferences and regulations.
5. Display Advertising and Remarketing:
If you have a substantial budget to allocate, display marketing and remarketing can be highly effective strategies. In marketing, the ‘Rule of 7-32’ suggests that when people see your ads between 7 to 32 times, they begin to remember and trust your brand, making it more likely to be etched in their minds as a trusted choice.
Most brands do like this there is no specific example for it.
Differences between international market entry strategies for B2C & B2B
Certainly, here’s a side-by-side comparison of the key (business-to-consumer) and B2B (business-to-business) businesses:
|Aspect||B2C International Market Entry||B2B International Market Entry|
|Target Audience||Individual consumers||Businesses and organizations|
|Market Research||Focus on consumer behavior and trends||Focus on industry, company needs|
|Market Segmentation||Based on demographics and behavior||Based on industry, company size|
|Local Partnerships||Distributors, retailers, e-commerce||Distributors, agents, representatives|
|Customization and Localization||Tailor products/services for consumers||Adapt offerings to business customers|
|Legal and Regulatory Compliance||Adherence to consumer protection laws||Compliance with industry regulations|
|Sales and Marketing Strategies||Consumer-oriented advertising||Industry-specific marketing efforts|
|Relationship Building||Less emphasis on personal relationships||Strong emphasis on building business ties|
|Supply Chain and Logistics||Focus on efficient consumer delivery||Ensure smooth B2B supply chain|
|Payment and Pricing Strategies||Consumer-friendly payment options||Flexible payment terms for businesses|
|Customer Support and Service||Consumer-focused support channels||Multilingual support for businesses|
|Quality Assurance and Standards||Compliance with consumer standards||Meeting industry quality standards|
|Risk Management||Currency fluctuations, consumer demand||Economic instability, business needs|
|Data Privacy and Security||Compliance with consumer data privacy||Protection of business data|
|Continuous Monitoring and Feedback||Feedback from individual consumers||Feedback from business clients|
|Cultural Sensitivity and Training||Awareness of consumer culture||Cultural sensitivity for business norms|
|Scaling and Expansion||Expansion based on consumer demand||Explore adjacent business opportunities|
|Consulting and Expertise||May focus on consumer market research||May require industry-specific expertise|