22 Feb 2018 | 0
Target markets for any product are not pre-determined! The decision-makers in organizations and their sub-units determine what they consider will be their relevant market.
Going Global: Developing a new market or moving into a new geography can be as prospective as it is risky, as a market strategy. Geographic expansion of an organization can be done in a number of ways these days. Researching and understanding the business climate (of the country you wish to expand to), the customer buying behavior, consumer spending etc. is not only challenging but also expensive and time-consuming. More difficult is to understand the cultural nuances which play a vital role in deciding the adaptability of a product in the chosen market. The existing methods of analyzing the market size, competitive positioning, compatibility, expected growth & cost to reach etc. establish the substantiality of the market. The considered market needs to be closely assessed on a basic level to understand its alignment to the organization's mission and it's expected position to reach & sustain in the chosen market. These efforts will be valuable to an organization when the cost of developing new market is positively affecting its bottom-line & ensuring ROI.
More than Just Revenue: The attractiveness of new & potential geographies should serve competitive advantages as well as assure quick growth for an organization. These markets not only serve as additional revenue streams but also are excellent opportunities for Innovation, New-product Development & Differentiation. Adapting to new markets with customization and tailor-made products can be new techniques of value creation for the organization.
Value Creation: 'Sophisticated differentiation allows the creation of new markets'. Differentiation can be achieved through product differentiation or by creating processes that value add to the prospective stakeholders. To derive key-benefits, knowledge about the current & future aspirations of potential customers should be carefully evaluated. Qualitative methods & analysis can be used to identify these benefits. Value generation for customers can be developed from a series of processes implemented by the organization and how well it's customers are integrated into these processes.
Changing Mindsets & Swelling Wallets: Changing external environments make it challenging to assess a market's potential. The bigger concern for any manufacturer is to identify the consumer-persona and understand their buying habits. In markets like China & India, consumers are value seekers alike, who constantly are searching for the best deals for their money. However, both these markets have embraced the perks of big luxury brands and have been open to trying out new products. Strategic utilization of the increasing brand loyalty can be central to an organization's long-term attractiveness & survival. Since the trust is high, these brands can benefit from the high level of awareness and allure of new markets.