Whether you’re starting a new business or launching into a new market, you need market penetration ideas to accelerate business growth. There are different approaches when penetrating a new market, but it requires research, tests, and enough resources to guarantee faster growth. Here are ways to penetrate a new market quickly.
Offer Reduced Prices
Prices are always a significant factor when choosing items, and to win a new market, settle for a price lower than that of your competitors. This strategy works best in markets where consumers are price sensitive enabling you to generate more sales volumes compensating for the lowered price.
Once you’ve created enough brand awareness, you can revert to standard prices but wait until you have established brand loyalty. When using this strategy, consider the average income of the target market in the new region. When the purchasing power is high, a reduced price might be perceived as a low-quality product creating less interest in the brand.
Also, you don’t want to lower the price to the extent that it affects business operations or leads to inferior product and service delivery. Do your research well to understand the price changes that will keep smooth operations.
A new product always creates excitement, primarily when you have marketed its intensively. Launching a new product can help penetrate a new market if you create enough hype and capitalize on the increased awareness to introduce existing products.
Also attend trade shows, other companies events, and sponsor events. Interacting with industry experts enables you to understand the specific needs of the new market. Take advantage of such events to create portable trade show displays to showcase the products, engage potential clients and inform the audience of the benefits.
It also helps to use digital marketing channels to create the hype. Use social media engagement, paid ads, and emails to let your clients know about the launch. You can also use banners and posters in high-traffic areas to announce the launch dates.
Set Up Chains or Franchises
To penetrate a new market, you can either start a chain where you run the business independently or franchise. Creating a chain gives you more control of the business’s day-to-day operations enabling you to understand the market better. It also ensures that you transfer your beliefs, mission, and values to the new company.
However, franchising is a better option if you don’t want to take care of the day-to-day operations. Franchising works better when you’re an already established and well-known brand making it easier to attract new franchisees and clients.
When starting new chains or franchises, carry out a detailed market study and make sure each new business doesn’t affect another’s marketing efforts.
Remodel an Existing Product to Meet the New Market Demands
It all starts with understanding your new market needs. Understand that markets differ, and so do culture, preferences, and buying power. Understand the target market, then modify the products to fit the needs and preferences.
Probably, some colors or packaging may be more appealing to some markets than others. You might even have to improve the quality to make sure it meets the target market standards. Another consideration is the size, marketing, language, and product descriptions.
Segment Your Market
As you will discover, market demands differ with demographic changes. Treating your audience as one large family with similar needs and preferences might not be effective. As you will realize, even sales vary in each region.
Segment the market to create smaller demographics which makes it easier to manage their demands. It also makes your marketing efforts more effective.
Be Part of the Community
If you want to create awareness for your product or learn more about the community, try to be part of it. People will gradually get to know about you and the new product and slowly start buying from you.
An excellent way to easily integrate into the community is by having workshops to enlighten the local community on issues related to your industry. For instance, if you sell sanitary products, talking about cleanliness, health issues, and the need to keep high hygiene standards might create awareness for your products.
Also, participate in local events, sponsor activities, and look for opportunities to be a guest speaker in any upcoming events. The more you become a known figure in a particular community, the easier it will be to introduce your products. Because people already trust your expertise, it will be easier to trust your products too.
As you will realize, there is no one rule fits all when choosing the right strategy to penetrate a new market. Try different approaches to ensure you get faster results.