Setting up an overseas business is a big undertaking. There are many logistical issues to consider as well as the amount of time and money it will take. Most importantly, customer acceptance is crucial for any kind of business. A business need to identify customer needs as a first priority for an overseas business. Customer research is the first step in making the decision to launch a business overseas. Below is a suggestion from Hunt Migration to market your business to visitors from overseas.
Market Segmentation
The first thing any new business or new product research does is to segment its market.
What slice of the population will it serve?
What does the current market look like?
How large is it and how fast is it growing?
Who dominates the market and are there legal, financial or technical barriers to entering the market?
A thorough research project will determine the answers to all of these questions. A market that is closed to foreign companies or that is contracting would be a poor choice to enter. For example, starting a newspaper in an economy with decreasing newspaper readership and laws to prevent foreign firms from owning media publications would be a bad idea. On the other hand, entering a market with a growing demand for smartphones and avid consumers willing to try new brands might be a better opportunity.
Targeting
Targeting is another critical component of the research into a new market. Targeting first identifies customer behavior. Once the behavior is known, the product or service can be tailored to that market. It is also a way to identify customer needs. The product or service may actually change from the home market to service the needs or demands of a new target segment. For example, Pizza Hut is generally considered an affordable and convenient option for pizza in America and Western Europe. However, when they first entered China they realized there was a demand for an upscale chain pizza brand. The company priced pizzas more expensively than in its home market and made the interiors slightly luxurious. The company quickly attracted the fast growing upper middle class of that country.
Branding
The next step is to work on the strategy to create a brand. Brands are useful because they create an impression in the consumer’s mind and are important to increasing customer loyalty. However, brands generally cost money to create in terms of advertising, public relations work and innovative products or services. The marketing work takes time and energy as well as consistency over a long period of time. Hopefully, your product has strong customer satisfaction to enhance and reinforce your brand as well. Apple has perhaps the strongest brand on earth. They combine public relations strategies, unique marketing campaigns, a strong retail presence and innovative products to support the business. This translates into the ability to easily enter new overseas markets.
Overall entering a new overseas market is not for the faint of heart. A company must conduct proper research and market segmentation in order to achieve success. To improve customer satisfaction and loyalty, the firm must suit the product to the needs and demands of the local population. Only then will they create a positive brand and a long lasting business.
