Download New Market Playbook - Calgary Chamber of Commerce

New Market Playbook
Entering a new market can be challenging for any business. No matter the size or which industry a
company is in, developing a new market can be as difficult as a start-up. Whether a company is
servicing a new vertical within their own regional market or expanding into new geography, there are
some fundamental considerations that should be addressed.
Assuming the market is logical and not obviously filled with insurmountable challenges, there are steps
that should be taken into consideration prior to investing the time, effort and money to expand. This
assumption takes markets off the table which may be unstable, unwelcoming or simply not ready for a
particular solution or innovation.
For those markets without these constraining factors, companies can find great success in opening up
new markets for their business. Expansion can provide stability to the business by introducing new
clients and relationships which allow the business to hire, acquire and balance one market cycle against
another. This can be both a survival and/or a growth strategy.
Given the current state of the changing global economic landscape, progressive companies are
considering their options for new markets and new opportunities for growth. Should they shift from
one industry to another completely or augment their current market with another complimentary one?
Perhaps, they should look at a region which has similar characteristics to their current market and
expand into that geography. Perhaps, they should abandon their current market and re-tool specifically
for another market. All legitimate strategies depending on the company and its stakeholders.
At Rainmaker, our global team has been building and implementing market expansion strategies for
international companies for many years. It seems that no matter where the company is based or where
is it going, the challenges are similar. Here are some questions that business leaders should ask
themselves when thinking about expanding into a new market:
Internal questions:
1. Does your company have capacity for growth?
a. Given the current structure of the company, could you add sales to the current
production without significant challenges or cost.
2. Does your company have the systems to support growth?
a. If you could take on these sales, can your internal systems easily adapt to these sales
and adopt them into your business? Consider contracts, POs, work orders, sales
software, delivery tracking, etc.
3. Does your company have the culture to embrace growth?
a. Consider your team and decide if they will welcome this expansion or not. This will be
critical to the success of the endeavour.
4. Does your company have the financial capability to expand into a new market?
a. Market development always takes time and money to be successful. Even doing things
on a “shoestring” will have costs involved in some form of marketing, hosting, travel or
promotions. Consider this well in advance.
5. Does your leadership team have the time to support the expansion?
a. If your team is too busy managing the current market for the company, they may not
welcome the idea of expansion. Or worse, they may claim to have time but then have
to prioritize other things above new market development in the future. Do as honest an
analysis on this point as possible.
6. What assets would you require if your business doubled its sales from a new market? Could
you secure these assets (human, equipment or financial)?
a. It is important to map out the potential requirements in this area and be prepared for
the time and financial investments required.
7. Is your company better positioned for regional expansion or vertical market diversification?
a. Are all of your current clients from the same industry? Complete an industry
breakdown of your clients to ensure you understand this essential information.
8. Do you have any patents or technological advantages that would naturally expose you to a
new market?
a. Intellectual Property of any sort can help you bring a unique value proposition to a new
market or vertical.
9. Is the primary industry you serve currently shrinking? Or perhaps moving to a different
geographical centre?
a. If the clients that you service are becoming smaller in your market, they may be
migrating to a more dynamic and active market.
10. Do you have unique skills or abilities within your business that may expose you to specific
markets?
a. People: cultures, languages, family ties
b. Specific or unique equipment
c. Location or access to market – rail connections, airports, transportation routes, etc.
External Questions:
1. Based on your client industry breakdown of your business, which growing industries are you
serving?
a. Consider this from both a geographical and/or industry based
b. Research the markets to determine those with the most growth potential
i. Quantify and qualify the market to ensure the possible ROMI (Return on Market
Investment).
ii. Identify the decision making centre for the industry with the best growth
potential.
iii. Determine the secondary markets for this industry
2. Based on your company’s place in the industry value chain, what is the best centre for your
expansion?
a. Identify the future growth projects planned in the industry
b. Identify the companies in the industry with the most significant engagement in the
projects
c. Identify the decision makers for your company in the new market
d. Identify the competition or substitutes in the market for your company’s offering
3. Which industry associations or business groups are important to your industry?
a. Chambers of Commerce
b. Unions
c. Industry meeting groups or clubs
4. Which government programs or support exist for your entry into the market?
a. Local government as well as provincial and federal government groups
5. How should your value proposition be adjusted for the market?
a. Test it on the market if possible
b. Adjust it as needed
6. Will your company have any technology issues in the new market?
a. Consider regulatory and technological infrastructure
7. Who should you meet with on your first intelligence visit to the market?
a. Include potential partners, clients and stakeholders
b. Meet with government, industry associations if applicable
8. How will you collect feedback from the market visit?
a. Consider various email and phone correspondence to extract intelligence
9. How will you maintain your branding in the market while you are away?
a. Consider a local office or virtual presence
10. What is your follow up strategy?
a. Consider how often you will be back on the market
b. Plan to follow up within three days of the meeting