International Market Entry Strategy Planning

International marketing strategy planning is one of the most over looked parts of a successful export strategy.  It is absolutely critical to the success of any international expansion but is only as strong as the effort put into it as well as the talent of the individuals creating it.

The first and most critical step is commitment.  By that I mean is your company committed to an export strategy rather than trying to get a quick hit to unload extra product or help during a downturn?  Many companies will not make money in the first year or two of a new market entry and they need to be prepared for it, ready to ride out the bumps as part of a longer term strategy.  With commitment comes the next most important stage which is planning.

Developing an international marketing plan starts with the basics.  What is your company selling?  Who is buying it in your current market and how does it compare to your current in country competitors?  This is often skipped but I believe it is a critical first step.  If you don't know what you do better, cheaper or faster than your competitors in your current environment why, would you think you could do it in another, that you know even less about?  I also think if you're currently working in a small market and if you're not one of the leaders there with your product / service you're probably not ready for a larger market like the United States - which is often the goal of many aspiring exporters.

Now that we understand what we do well in our current environment, its time to look at the chosen market a company thinks they can export into.  My next blog will revolve around the next step, what a market entry analysis should include and how to go about developing one.

Do I need a Market Entry Strategy?

If its time for your company to expand internationally or if you're already international and looking at new countries to enter, the answer is yes! As entrepreneurs know from starting their businesses there are always things that pop up that they did not anticipate or plan for. Developing a strategy reduces uncertainty by committing to paper what you know, what you think you will do and how you will do it. Many people “know” what they are going to do but when asked to write it down they often find it challenging. By taking the time to write an entry plan (and utilizing a solid plan template) it forces them to think through all the steps they need to take and make sure they have covered as many elements as possible as well as put the right resources in place.

The other advantage of writing a plan is to obtain outside perspective or guidance. Entrepreneurs often get wrapped up in day to day operations and are challenged to step up and look at the big picture. By soliciting experienced external assistance the CEO can have someone look at their company without the rose colored glasses we often wear and make suggestions / recommendations which may have been over looked. This will often challenge the CEO’s thinking and lead to a better overall strategy. Generally speaking an experienced operator in your vertical is your best bet. If you can get them to help you for free great, if not find a consultant that does this for a living and map out what they will deliver and what you will do to develop your plan.

If a CEO chooses not to do the upfront market research and develop a coherent entry strategy, the best case scenario is a bit of floundering and squandering of valuable time and resources (something most small businesses can ill afford). Worst case scenario is an entry failure or even more disastrous the development of a brand error which could haunt any future re-entry endeavors.

The bottom line is that by investing your time and energy into writing a market entry strategy before you start selling, you will reduce entry uncertainty, be more confident you have the right plan and ultimately greatly increase your chances of success in your chosen market.