Breaking into an emerging market
7 key tactics
Let’s face it. Brexit is still bringing many financial insecurities. As a result, the UK marketplace has slowed down – considerably. It’s no surprise therefore that many businesses are looking to emerging markets to grow their business.
First of all, what is an emerging market? Simply put: it is a young market on the way to establishing itself; by sellers knowing where buyers are and by buyers knowing where the product availability is.
Enterpreneurs and companies need to understand how to capitalise on moving into emerging markets whilst maintaining business growth in the UK and other countries.
The trick is how to avoid the pitfalls. Here are a few points to get you started:
- Be realistic. Do not overestimate the usefulness of your past experience in the emerging market. Past success in your current market does not guarantee success in an emerging market. It does give you a starting point. However, what did work in the past may not necessarily work in the future.
- Information is key. Truly understand the market you are trying to grow in. By this, I mean more than the economic outlook. You need to understand the local infrastructure & its’ challenges, how this relates to the business sector you seek to grow, as well as the cultural nuances to avoid friction. Consider travelling to the area.
- Use an intermediary. Letting go can be difficult, but more often than not an intermediary who truly understands the market you are trying to penetrate will wield greater results than trying to go it alone. Intermediaries for emerging markets are few and far between, so it is important to you to engage one that has proven success stories and well as good referrals.
- Strive for balance. Adapting your business model to the emerging market whilst maintaining your business strategy can be tricky. Once you have done your due diligence and engaged an intermediary to work with, you need to be flexible to adapt to the new market.
- Start small then go big. Test and learn for a realistic time period. This will provide valuable insights to enable you to optimise your sales strategy. Transform your existing tactics to localised actionable tasks. How you implement your sales tactics can differ greatly between countries, as can expressions or key terminologies during the process. Building an emotional connection between consumers and brands are key. This may even mean a short-term client gain to build a longer-term customer lifetime value (CLV) relationships. Get those successes in and build on them.
- Remember you are the new kid on the block. Breaking into a new market requires you to raise awareness first of who you are, what you offer and what the value to the customer is. Once you have raised awareness you can start engaging with key prospects.
- Invest in your investors. Do you have investors? Why not? you should. Not only will the extra capital help in your growth – especially as you grow in your chosen emerging market. Investors from developing markets are being extremely careful which emerging markets they are looking to build their capital. I would therefore recommend seriously considering outside investment – if not already done – especially once you have gained initial success. Once signed up, it is essential that you continuously keep your investors informed on progress, any challenges you may have and offer solid forecasting… and deliver!
Growing your business in emerging markets is something you can achieve, providing you follow these steps and link them to proven new business development activities. Integrated marketing activities such as research the market place/prospects, implement a social media awareness strategy, conduct telemarketing activity followed by emailing contacts. These will not only provide you with the local information you require but also generate a solid contact strategy, ultimately delivering vital leads and appointments for you to showcase your offering.
I can be bold enough to say this, as we’ve been helping businesses from a variety of sectors grow in specific emerging markets for over 10 years. We have the success stories and references and would welcome the opportunity to show you what is possible for your business.
Like this article? Have any questions or comments? let’s talk. Call me today on 01865 893219 or 07884357187 to discuss business development in emerging markets.