New Market Penetration Strategy

We live in a world of abundance. As new markets emerge and young markets become established , it is the ethical and sustainable firms that must lead the charge to set the standard in local, domestic, and global capitalization. To do this, you must be willing to enter new markets.

Creating a New Market Penetration Strategy (NMPS) is faster and simpler than most business owners think. You can do countless and thousands of studies before committing to entering a new market, however, it will ultimately come down to your product/service’s ability to stand out – as it should.

Step 1: Defining the Goal / Purpose

If your business has nothing offer of value to the market, it is best to decide on a different business development strategy. Here is our goal for the latest market we’ve entered.

Goal:    Create valuable, loyal, & ongoing partners, in which we provide ethical and sustainable services to create a long lasting impact on Global Development.

Step 2: Define Boundaries & Territory

For you to enter a new market, it will require someone to sell into the market. Unless the client comes to you first, you will have to make the initial contact. This requires for you to know your boundaries. In The Silva Aceituno Group’s (The S.A.G.) case, A Global Solutions Firm, we’ll be utilizing continents as territories.

  • Latin America
  • North America
  • Asia
  • Europe
  • Africa
  • Oceania

Note: that we separate Latin & North America due to the vast difference in services provided (North America is domestic market which allows us to sell BD services). The order listed should be prioritized based on strategic client orders, by volume of sales, or if easier, by desired volume of sales.

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Step 3: Define Strategic Requirements

Whether it’s a product or a service, your firm should choose cities that allow for easy implementation of your service first. In The S.A.G.’s case, our strategic requirements would be:

  • Big cities (which will have the most population need in restoration and overall development).
  • Free Trade Agreements
  • Ability to send directly to Port
  • No language barrier

 

Step 4: Choose Strategic Targets

Which cities, regions, countries fit your requirements? To start out with Latin America, The S.A.G. would choose 3 countries in which it can provide services through a Free Trade Agreement with the domestic country, in our case, The USA. The target country will be:

  • Chile – established economy
  • Peru – establishing economy
  • Colombia – emerging economy

 

Step 5: Create Action Based benchmarks

Ultimately, you cannot control your clients nor your results. All you can control are the action taken to give way for results. This means that to get results, we must create actionably goals. Want to go from 0 sales to 100 sales? Here are samples The S.A.G. has:

  • Take South American sales from US$5 Million to $8 Million.
  • Open Asian Markets to sales worth $1 Million.

To know how to convert sales, you must have a sales process. Don’t have one? Don’t worry, we’ll cover how to make one soon. Here is ours:


With this process in mind, our goal action steps to more sales is creating qualified proposals out into the world of prospects.

Our data has taught us 1 thing: for every 12 qualified proposals, we get 1 sale. That’s about an 8% conversation rate. What is your company’s conversion rate? Think of how many estimates/quotes/proposals you’ve put out compared to how many sales (correlated to those numbers) you’ve won.

Conversion rate = proposals created and submitted x 100
                                           number of proposals won

Step 6: Action Plan

Reverse engineer your sales process. For a total of 8 sales, we’re looking at an estimated 96 proposals necessary to complete. So for The S.A.G., 100 sample contacts will give us the following results.

  • We expect around 70% open rate thanks to our customized high open emails (separate article). 100 emails will result in 60-70 opens.
    • An additional 22% will open polite and consistent follow ups (total 92%/92 opens)
  • Of the initial 70 opens, 55 will be interested in more information (55 appointments)
  • Of the 55 appointments, you can expect that around 2 in 3 will be qualified: 36.7 qualified
  • Submit 36.7 qualified proposals

Do this 3 times over your target demographics and we’ll reach our goal of 96 proposals.

Step 7: The secret to Market Penetration

As we’ve discussed so far, market penetration can be achieved for little by any firm willing to put in the work. However, the biggest factor in marketing is the combination of emotional attachment and repetition. Consistency of the right actions, the secret of business in general, will win out even in the most impregnable markets.

Follow these 7 steps to have a simple strategy ready to be implemented. The overall goal is to create a guiding strategy that will aid you in market development. This combined with consistency will break through metropolitan markets. The key to moving business forward is anticipating the next step and executing it aggressively. After you have a strategy all you truly need is either a prospect or a lead (depending on your sales process). Thanks to the strategy above, the hard part is over as you can easily find international prospects and turn them into sales (next article) utilizing your strategy.

Has your firm tapped into new markets in the recent years? What have been some of the best lessons learned you learned? We always enjoy thoughts on important global landscape changes. Subscribe to receive our next article on generating prospects and leads.

Very Bests,

Diego M. Silva Aceituno, Managing Partner

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