Let’s start with the basics. A go-to-market strategy is like a blueprint that outlines the steps necessary to succeed in a new market or to expand your business. It can apply to any aspect of business, from launching new products and services, to launching your company or brand or moving a product into a new market or new region.
An easy way to think of it is as a more detailed version of your marketing plan—one with a narrow scope and that is hyper-focused on business expansion. Like any good strategy, it’s not meant to be some unmanageable document, but rather a tool that can be used and shared across your entire company. This means your go-to-market strategy needs to be comprehensive enough to be valuable, yet agile enough to be edited as you get customer feedback.
First, it clarifies why you are launching your product, target population, and how you are going to tackle the never-easy job of getting them to engage with and buy it.
Second, it forces you to think through all the issues or problems your customers might face when introduced your product or service into new market.
Here are five steps you can follow to build an informed market entry strategy to expand your business into previously unknown territory:
Determine the Market
Clearly defining your market may seem like a simple step, but before you identify who you want to sell your product to, it is difficult to understand their needs. You’ll want to consider the demographics, location, local markets and common interests or needs of your target customers along with any government regulations. In UAE, your business will be governed by the designated authority in which your business is set up and in some cases might be additionally governed by another government entity.
The best way to accomplish this is to conduct a thorough market research study followed by a business plan before committing any resources to a new market entry or business expansion.
Execute Market Research and Analysis
Expanding into new markets requires intensive market research in addition to target customers. You’ll want to develop an in-depth understanding of market growth rates, forecast demand, competitors, and potential barriers to entry. This is particularly important if you are looking to enter a relatively undefined market or into a new region. It is important to understand and study which license allows you to carry out your chosen economic activity.
You need to use every means at your disposal to get to know your new market including online research, studying the competition, attending exhibitions, making business contacts in the region or consult a business consultant for expert advice.
Identify Internal Capabilities
An internal assessment is an exploration of your organization’s competency, cost position and competitive viability in the marketplace. Conducting an internal analysis often incorporates measures that provide useful information about your organization’s strengths, weaknesses, opportunities and threats – a SWOT analysis. A detailed SWOT analysis will help determine how to maximize it’s response to opportunities with proficiency. It also helps to determine the core competency of the firm.
Most of your decision on how to enter a new market is determined by an internal capabilities analysis. During this stage, you should ask yourself questions like: How much of our core competencies can we leverage? Do we have sales channels/infrastructure/relationships in this new market? What time-to-market considerations exist?
Mode of entry
There are many ways to enter a new market. You can use the services of a local distributor or agent located there to test the waters You might decide to become a franchisee or acquire an existing business. This is another smart way to enter the market.
Once you’ve selected an attractive market, you’ll want to determine the appropriate level of organic investment vs. expanding through acquisitions. If you have complementary infrastructure or sales channels in place, you might want to consider an organic approach to growth. If you are entering an entirely new market, with limited core assets to leverage, you can consider a joint venture or acquisition.
Develop a Business plan
Once you have sorted out the details of your strategy, you will be ready to write a business plan. Once created, this document will be your blueprint going forward, detailing your goals, research findings, contacts, budgets, major action items and time lines, and how you will monitor and evaluate your success on an ongoing basis.
It’s important to follow your plan so that you are not overwhelmed in a new market.
