In my prior blog, I detailed several Unknown Unknowns related to technical needs, pricing, channel strategy, and regulatory requirements. In this next installment, I'll discuss how your existing brand and the type of market you choose will (or will not) impact your new product, new market strategy.
Unknown #4: Your Brand's Impact (or Lack Thereof) in This New Market
A new market may mean that your current brand recognition and strength don't apply, so investing time and money in building your brand in this new market is crucial. It may be costly, but it is an essential investment when penetrating a new market. Consider the steps you need to take to establish your brand and adjust your language to resonate with the new audience. This might involve rethinking your messaging, visual identity, and overall brand strategy.
Unknown #5: Are You in a Red or Blue Ocean?
A thorough market analysis is the cornerstone of introducing a new product to a new market; it is mandatory. The assumption is that you've identified a potential new market that isn't solely a "red ocean" (a market saturated with competitors). Entering such a (red ocean) market would require significant effort and comes with substantial risks and potentially poor margins. Red oceans come with at least one advantage: customers understand what they are looking for, as do the suppliers servicing that market. This provides lower risk (there is a market) but may also produce lower returns (e.g., on your margins). So you think you've found a blue ocean. Now, you're trying to build a new market with a new technology, but do your customers even understand that a solution exists and that you have the solution? Market-making like this requires a different approach to both marketing and selling.
To recap, here are all five key takeaways when introducing a new product to a new market:
1. Conduct a Comprehensive Market Analysis: Understand your customers' technical needs, price ceiling, and the market's saturation level.
2. Validate Your Channel Strategy: Understand the customers' buying processes and their channel needs. Don't assume your existing channel strategy will succeed in the new market.
3. Ensure Regulatory Compliance: Familiarize yourself with all regulatory and legal requirements in the new market.
4. Build Your Brand: Establish your brand, adjust your messaging, and make sure you capture strong value statements.
5. Understand the Nature of Your New Market: Is it Red or is it Blue? We're talking about Oceans. I'll discuss the pros and cons of each type of market in our next blog.
Lastly, remain agile. Be prepared to adapt to Unknown Unknowns. By acknowledging and preparing for the Unknown Unknowns, you can navigate this complex landscape with greater confidence and chance of success. Introducing a new product to a new market is undoubtedly challenging, but with careful planning and a willingness to adapt, it can also be incredibly rewarding.
And don't hesitate to ask for help. The world-class team at Market Operandi has developed a system to lead you to the right solution for the right market(s) with a team aligned across functions. Our team has successfully led innovation groups at large companies such as Intel, ZEISS, IBM, ThermoFisher (FEI) and guided many MO clients through this strategy and process of market penetration.