Rants & Raves
 
August 1, 2024
Penetrating New Markets - Do Your Homework
 

A significant part of our work helps clients develop new products and penetrate new markets. To be effective, there's a lot of homework that must be done.

 

To be successful, avoid costly mistakes and time-consuming misdirection, it's important to know as much as possible about your prospect markets. For marketers seeking to penetrate or expand their brand's presence in U.S. markets, this country is not one big, homogenous destination. There are distinctive regional characteristics that influence the way people live, what they consume and how they shop.

From a logistical perspective, this means you may need more than one distributor with regional expertise to service these varied destinations. Plus, if you're manufacturing abroad, ports of entry and location of warehouse become critical. You wouldn't want to land your products in Los Angeles if your major clients are operating in New England, the Mid-Atlantic or southern states.

When it comes to effective and influential marketing, I've found several issues that must be fully understood before product formulation is decided, packaging is designed and manufacturing has begun. The most important are:

Understand the competitive landscape. You want to know who your primary competitors are, what they make, how they communicate value, what their brand imagery looks like and where their products are sold. Unless you're offering a lower cost option, it's important to do everything you can to avoid parody.

Satisfy needs, respond to trends and preferences. Just because you have a good product does not necessarily mean it will sell well. When deciding which of your products will be well received, products that respond to regional preferences can be beneficial. While you may attract meaningful sales of other products in your catalog, having a few that clearly resonate with local audiences is a plus.

Have a clearly defined value proposition. Whether you're talking to trade or consumer audiences, clearly explaining what your product is, how it performs and why it should be purchased are essential.

Make 'em drool. Yes, this is Studio Spear's tag line. It is, however, an essential marketing attribute that your products must embrace. From formulation to packaging, your products should effortlessly attract attention and provoke desire. This holds true at trade shows where your audience is discerning retailers and distributors. Plus, in retail environments where your product appears shoulder to shoulder with other brands, it needs to prove value and establish preference.

This takes time. A lot of time. When we develop marketing plans, knowing how long it takes to meet with buyers, promote trial and build frequency of sales, we typically project for three to five years. Make sure your financial planning anticipates this timeline with sufficient funding for inventory, a dedicated sales team and appearances at trade shows and product reviews.

There are many other issues that contribute to successfully introducing new products and penetrating new markets. Should you need assistance, give us a call or shoot us an email. We'd be happy to hear from you.