Top 7 Strategies for Accessing Global Market Successfully

Top 7 Strategies for Accessing Global Market Successfully

A company might use a market entry strategy as a guide to help them break into new markets. Since there is more than one way for businesses to sell their wares internationally, they will pick the most appropriate strategy in light of their objectives and intended audience. By learning about the various market entry tactics and how they vary, you will be better able to choose the one that will provide the greatest value for your business.

In today’s globalized society, where physical borders mean little in terms of the free flow of goods and the promotion of services worldwide, the adage “think globally, act locally” is more applicable than ever. It is no longer plausible for businesses to avoid the challenges posed by global marketing competition by limiting their operations to the domestic market or a small number of carefully chosen international ones. This article delves into the topic of market entrance strategy, discussing how firms looking to grow beyond their current local base can utilize them. 

  1. Understanding the Cultural Differences

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Global branding efforts benefit from investigation into the connotations of potential names in each target area. Companies like Brand Catalyser can help you understand such differences. For instance, Chevrolet’s Nova was a huge flop in Spain, not because it was a subpar product but because No-Va means “no-go” in the language. The Colgate variety of toothpaste Vicks cough pills bombed in Germany because the letter “V” is pronounced as an “F,” which is slang for sexual intercourse. Cue failed to catch on because a popular pornographic magazine already used the name. Nike recalled products with an image that some people saw as a likeness to the Arabic word for Allah. A company’s marketing efforts could be for naught if the brand name doesn’t mesh well with the target audience’s culture or language.

Abercrombie’s t-shirt marketing has been labeled racist and has sparked outrage from customers in the United States. Fitch also ran a similar promotion. Many people found the tagline “Two Wongs can make it White” offensive, and businesses that used the phrase “Get Your Buddha on the Floor” lost business. Brands that used Hindu deities as names received backlash from the country’s sizable Asian population, prompting their removal from shelves.

Hence it is of topmost importance to study cultural differences before embarking on a global journey. 

  1. Connect with a Partner In the Area with Experience In The Market

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It’s not a media blitz or a marketing budget that gets things done in many countries. Success requires familiarity with the local market, which can be achieved through a worldwide marketing partnership or marketing tie-up with a local partner in the same industry. That will let the multinational corporation dominate its industry much more quickly. In the 1980s, companies including Honda, Renault, Suzuki, and Forbes (a Swedish company) introduced vacuum cleaners to the Indian market (Eureka Forbes through a joint venture in India). Companies like Starbucks (Tatas) and Sharp (Kalyani) have partnered with Indian businesses to break into the Indian market.

Partnerships can be joint ventures (sometimes known as “50:50” partnerships) or marketing alliances. Companies sure they can succeed on their own can create wholly separate subsidiaries. Partnerships between businesses can last for a limited time, after which any party can go alone under a different name. Following the breakup of their partnerships, Hero and Mahindra each released their line of motorcycles and automobiles, respectively.

  1. Exporting

When you export, you must advertise your goods in the target markets abroad. Rather than relying on a middleman, some businesses pursue direct exporting and selling their products on foreign marketplaces. Businesses that deal in high-end items or have previously sold worldwide frequently choose this approach.

A corporation can also take the indirect route of exporting by employing the help of intermediaries like overseas distributors. When first expanding into global markets, many companies start with indirect exporting. Agents know what it takes to thrive in the markets where they work. Therefore even if corporations have to pay them for their services, indirect exporting is often profitable.

  1. Piggybacking

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Consider piggybacking if your company has connections with other businesses that sell products overseas. One way to get into an international market is to approach existing companies and inquire about stocking your goods alongside theirs. Profits from sales are split 50/50 if your company and the overseas firm come to terms with this arrangement. Your business can delegate worldwide marketing to a partner while concentrating on domestic retail to lessen the impact of international sales.

  1. Company ownership

A business that wants to sell its products abroad but doesn’t want to deal with shipping and distribution would do well to acquire an existing firm in the target market’s country. Owning a company that is already well-known in your target market’s worldwide community might assist in promoting your own company as a reliable and trustworthy local competitor. In contrast to other methods of breaking into a market, the upfront investment in a company typically yields a higher return on investment. However, this is not always the case.

  1. Franchising

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Franchising is selling the right to operate a retail outlet on behalf of a firm to an individual or group of individuals for a fee. Although franchises are more widespread in the North American market, they are not limited to the Americas and can help firms grow internationally. Brand awareness is essential for franchising since it ensures that consumers in your target market know your offerings and want to buy them. Franchising allows businesses to profit from well-known brands while employing a management style that is more hands-off.

  1. Outsourcing

To outsource is to contract with a third party to handle some or all of a company’s operations. It is a method of entering a new market that involves contracting with another business to sell your goods and services abroad. Businesses that choose to outsource risk losing some say in the distribution of their products, but the money they save on salaries may be worth it.

Final Thought

Given the variety of international marketplaces, it could be challenging to master the intricacies of each area. Companies often fail to successfully expand into other markets because they view such markets as mere extensions of their existing domestic ones. A basic translation strategy might not work for mass media campaigns. Thus, it’s essential to create brand-new advertisements with themes appropriate to the country’s social milieu.