Market entry is the process of putting products or products related to those products on the market. Any business that wants to enter a market will think about the following:
- How big the chance is.
- Stopping points.
- Structure of the market.
- Competition.
- Growth plans and past growth.
- Analysis of the environment.
- Investing at first.
Sometimes, a market entry strategy has to be set up if there are a lot of importing and exporting and a lot of rules. Companies sometimes think about getting into crowded markets, where they need to look at a lot of different factors to make their products stand out. Often, companies create niche markets to get into crowded markets.
Market entry strategies
Some of the methods used to get into a market are:
- Franchising.
- Licensing.
- Alliances.
- There are mergers and purchases.
- Exporting.
- Joint ventures.
Market entry strategies for international markets
Here are some ways to get your product into the Saint Martin market so you can sell it there:
Shipping out
When you export, you market the things you make in the countries where you want to sell them. Some companies do something called “direct exporting”, which is when they sell the things they make on international markets without the help of a third party. Most of the time, this method is used by companies that sell luxury goods or have sold their goods on global markets in the past. A company can also export indirectly by hiring agents, such as international distributors, to do the work for them. If a business is just starting to sell overseas, it will often choose indirect exporting. Even though companies pay agents for their services, indirect exporting often gives a return on investment (ROI) because the agents know what it takes to succeed in the markets where they work.
Piggybacking
If your company knows people who work for companies that already sell products overseas, you might want to think about piggybacking. As part of this plan to get into a market, you will ask other businesses if they will sell your product overseas. If your business and an international business agree to this plan, the profit from each sale will be split between the two. Your company can also manage the risk of selling overseas by letting a partner handle international marketing while your company focuses on domestic retail.
Countertrade
Countertrade is a common way to do international marketing in a roundabout way. Counter-trading is similar to bartering because companies trade each other’s goods instead of selling their own. Even though the system is legal, it does not have specific rules like other ways of getting into a market. This means that companies may be able to solve problems by making sure that other companies know how valuable their products are and by trying to get goods that are of the same quality. Counter-trading is a good way for many businesses to save money because it can get them out of paying import quotas.
Joint ventures
Some businesses try to reduce the risk of selling on an international market by teaming up with other businesses that also want to sell on the global market. Since joint ventures often work like large, independent companies instead of a combination of two smaller companies, they have the potential to make more money than individual companies. This strategy for getting into a market could lead to unequal company involvement, but both sides can work together to set up fair processes and help avoid this problem.
Contracting out
When you outsource, you hire another company to handle certain parts of your business for you. As a market entry strategy, it means making a deal with another company to handle your company’s international sales of goods. Companies that choose to outsource may lose some control over how their products are sold, but they may be able to make up for this risk with the money they save on labor costs. How you enter a market also depends on when you enter it. The market in Marigot, the capital of the French part of Saint-Martin island, has more than a hundred stands and is the largest open-air market of its kind in the Caribbean. It sells freshly caught fish, tropical fruits and vegetables, spices, meat, “rhum arrangé”, and many other products from the island.
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