Archive for the ‘Market Size’ Category

Increasing Sales In Challenging Times, part 3 of 3

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In the final installment of this article, Julia Cupman concludes her list of points to consider when assessing new market opportunities, and reiterates that the economic downturn still presents myriad opportunities to many companies:

7. What is the market structure?  A key to a market entry strategy is getting the channel to market right.  To do this, the research should explain what the market looks like, who the main players are and what channels to market they are using.  For example, substantial sales may be generated through distributors, agents or other types of intermediaries; this is important information that will suggest possible routes to market.

8. What are the market’s perceptions of the current suppliers?  A company cannot enter a market without understanding who their potential competitors are and the market’s views on these.  Hence, the research findings should document which suppliers of the product/service are known and used, the perceived strengths and weaknesses of these suppliers, and the nature of the relationship between the buyers and suppliers.

9. What is the competitive environment?  The degree of rivalry should be explored to provide an insight into the competitive environment.  Profiles of the major players should be included in the research, plus insights on how these players operate, how they position and promote themselves, and what their product/service looks like.

10. What are the incentives and barriers to entry?  The research should investigate how the incentives to entry can be maximized and how the barriers to entry can be overcome.

11. What is the market size?  No company should ever consider entering a market without a feel for market size.  It needs to know the current size of the market and the annual market growth rate in order to determine whether market expansion is feasible.

12. What is the opportunity for a new entrant?  The research should explain how a new entrant should enter the market and how it could steal market share, including an indication of potential market size.  It should also provide an overview of which market segments offer the most opportunities and what gaps there are in the market.

Market expansion may be a viable opportunity that offers a means for companies to sell more if their prospects domestically have been blackened by the economic downturn.  Market entry research can cost anything from $40,000 upwards, depending on the nature of the research.  This is a small cost to pay given the high return on investment.  Hence, companies that cut their marketing budgets during economically challenging times are potentially closing doors to new opportunities.

To find out about B2B International’s market assessment research, please click here.

Posted in Business Decisions, Competitor Analysis, Julia Cupman, Market Assesment, Market Entry, Market Size, New Markets |
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US Clients Move Focus to Developing Economies

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Over the past year, B2B International has observed a sea change in clients’ global research and market intelligence requirements, reports Director of International Operations Matthew Harrison.

“Throughout our history B2B International has obviously placed a great deal of importance on international research. Our clients demand not only that we are capable of researching the markets of interest to them, but also that we have a rounded experience of a variety of geographies. Over the past 10 years, half of our work has been international in scope, so we feel that we have delivered in terms of international experience.”

Over the past 12 months, however, we have noticed a significant shift in emphasis towards developing economies. Clients who previously were asking us to research the UK, USA and France are now increasingly asking us to look at Eastern Europe, Central Asia and East Asia. The number of different countries we have researched over the past year alone has grown by around 40%, with Russia, China and Ukraine being areas of particular growth. Four new geographies were researched for the first time by our team, in the shape of Libya, Mozambique, Tanzania and Azerbaijan.

This growth has been led by our US clients. In the past year we have researched over 60 different countries for US organizations, particularly manufacturers whose domestic markets have often matured and who are therefore seeking to grow their client bases amongst the rapidly industrializing Eastern countries.

We have implemented a huge variety of research techniques in developing geographies; however, by far the most common are market assessment and competitive intelligence studies. This reflects the rapidly changing nature of so many Eastern markets and our clients’ recognition that their market intelligence must constantly be refreshed.

Whilst these may be challenging markets to research, they certainly add interest to the job and also differentiate our company. How many businesses are genuinely capable of obtaining information from Libyan Government officials or Mine owners in Azerbaijan? Our ability to ask and answer the most difficult questions in the most difficult locations is one of the things that mark us out from the competition.

Posted in Global Research, International Market Research, Market Assesment, Market Intelligence, Market Size, Matt Harrison |
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