Don't end up like Coca-Cola, trying to market two-litre bottles in Spain. Despite the brand's popularity, its campaign failed because Spanish refrigerators typically couldn't hold such large bottles. Or consider the lesson learned by General Foods in Japan. The company spent millions of dollars marketing cake mixes, but sales remained low because only three per cent of Japanese households had ovens.
To conclude, you must define your value proposition correctly. Achieving a fit between the product and the target market is due to focusing on the unmet needs of a specific customer.
Define your market entry strategy
Globalization has changed the way companies approach their distribution strategies.
If we think of physical production , manufacturing can now be spread across the globe and products can be delivered to markets on time. It is similar to eCommerce companies that can manage the delivery of goods from local suppliers. For software companies , meanwhile, geographical borders often only matter in terms of legislation, talent recruitment and language barriers.
However, economic uncertainties can impact even "globalized" businesses. This means you need to think carefully before choosing your distribution channels in a new market. Consider a variety of channels:
Distribution channels in a new market
Direct distribution occurs through the company's own channels. More and more companies are moving in this direction. Direct distribution allows companies to cut out the middleman and own every part of the operation, resulting in greater customer satisfaction.
Indirect distribution involves partnering with third parties to sell and fulfill your company's value proposition. Many reputable companies use this approach to leverage relationships through third-party partners.
This is how SEMrush entered the Japanese market, with the help of a digital marketing agency – oRo. This strategic partnership helped double performance results in the market.