New Market Entry - How to Gather Market Intelligence

Market intelligence should be the first step while entering the market. Entering a new market can be risky if you aren’t sufficiently prepared. The industry, geography, and market you plan to venture into will dramatically change your market entry strategy.

This is where market intelligence comes in!

Market intelligence gathering is collecting and analyzing data points around the market's maturity, customer demographic, geographical insight, industry insights, and competitor analysis.

Market intelligence can help you understand metrics such as the market segmentation, the product’s capacity for market penetration, the market opportunity for the product to make a splash, and the existing competitor landscape, all of which can help you adapt your product to suit the market’s needs.

For example, company X is a mobile games publisher operating primarily in the United States market. They wish to enter the MENA market. Company X would need to explore price points for their product, the current kind of game publishers in the market (including other global giants), the prices of these other products, and the likelihood of customers buying their products before they decide to enter a new market. Market intelligence gathering can help company X make an informed decision!

So, what are some questions that market intelligence can help you answer?

What is my market entry strategy?

The first step in developing a market entry strategy is to identify what segment of the market you wish to target, that is, who you are selling to.

Market intelligence can help you classify and identify what market share you wish to capture through customer interviews, focus groups, etc.

After you’ve identified your target market, you will need to determine how you will reach them. When you try to determine different entry points, you must choose one that will lead to the most future growth opportunities in your target market and adjoining ones.

Market intelligence, in this scenario, can help you explore different market entry routes and find the one that will reach the target market quickly and effectively.

What are some key market determining factors?

When entering a new market, it’s important that you have a deep understanding of the factors that influence this market.

These most commonly include the cost of entering the market, consumer preferences, challenges that may arise, and opportunities in the market.

A consumer analysis would help you understand what problems the consumers face and if your product can solve them.

For example, in the case of company X, if market intelligence suggests to them that the English-speaking consumers in the MENA region face a dearth of games, this not only serves as an important bit of customer insight but also presents an opportunity for their business. Another important insight can be the genre of games most commonly preferred in the region. Does company X have these genres? Are any of these underserved? Market intelligence can provide the answer to these questions.

Is there the potential to be profitable here?

Like launching a startup, most market entry attempts fail because they forget to consider that the market they are entering may not even need their product.

Market intelligence can help you understand your target audience - where they live, how much money they make, and if there’s true demand.

Are there competitor companies already selling similar products to this audience with success?

Gathering market intelligence and understanding the potential for profit can help you evaluate if you have a chance.

Is my product competitive in this market?

You’ve gained some insight into the market, and after some analysis, you’re sure that your product has the capacity to be profitable based on a price point you’ve set, but can it be competitive?

Understanding the competitive landscape is key to launching and running a successful business. You need to take the time to research the stories of your competitors - when did they start? how did they succeed? how did they fail? did they change strategies after the failures?

When determining what market you should enter, you need to know if there are already too many competitors. You might be unable to successfully push your product if the market is already too saturated. Gaining a bird’s eye view of the market and its key players can be helpful in this scenario.

What will my exit strategy look like?

No matter how extensive you think your analysis is, it’s wise to have an exit strategy in mind.

You should ask yourself questions like - What will I do if my business fails? What will I do if my product takes off? Am I looking for venture funding? What stage would I like to solicit investors at?

Market intelligence can play a key role in identifying the investing landscape of the market. For example, company X may choose to launch in Jordan over Morocco owing to the broader exit opportunities and investor support.

Market intelligence can give you greater insight into your industry and help you identify new expansion opportunities. In this article, I touched upon the power of market intelligence when entering a new market. However, it can be a powerful tool for customer retention and staying up-to-date as new competitors enter the landscape. But, it’s only useful if the information you find is accurate and relevant.

Staying on top of market intelligence can quickly become time-consuming for small and growing businesses. A solution like Market Mapping can not only provide a comprehensive overview of the market but can also offer real-time insights into the competitive landscape and an analysis of your next step for business success.