A new market, in simple language, can be defined as the selling of your existing product or service to a new demographic for a new purpose. A business becomes successful only when it starts to penetrate new markets. This is what made Facebook a global brand and this is the reason why people are equally crazy about Apple products in India as they are in the United States.

However, exploring new markets is easier said than done. There are many risks involved financially, and a company’s name and reputation could also be at stake. Looking for funding, through tools like mortgage loans could be one option. So, if you are planning to jump into a new pool, here are a few things you should be aware of.

Things to Keep in Mind before Expanding

  1. Measure the Current Strength

When you move to a new location, you have to adapt accordingly. For example, when McDonald’s came to India, it changed its menu completely to attract the target customer. However, there are certain factors that help you, irrespective of the location, and you need to assess them before expanding. These include your current market or customers, if your business has survived despite tough competition or was it successful because there was no competition, limitations that you would like to work on, etc.

1. Potential Market

You’ll have to spend hours researching the market to identify the potential in them. You will have to understand the habits of your target consumer and know if there is adequate demand for your product or not. For example, opening an iMax theatre in a Tier III city may not be the best idea, since there might not be enough takers for such a product.

2. Identify the Advertising Tools

Advertising is the key for any company entering a new market. For example, take the case of Paper Boat in India. For years, Coca Cola and Pepsi faced no competition from any third party but Paper Boat took a unique approach towards it. Instead of colas and other aerated drinks, they came up with Indian flavours like Aam Panna, Jaljeera, Jamun, etc, used a new style of packaging and their advertisements were played in movie theatres. Similarly, you’ll have to identify which media and advertising tool will give you more recognition and identity in the market.

3. Follow the Budget

Set a very strict budget and follow it sincerely to avoid unnecessary expenses. This step also includes identifying the sources of funding like mortgage loans, loan against shares, etc. If you are planning to take a loan against property, you must also be aware of home loan interest rates too.

By Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles of partners on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to editor.webposts@gmail.com.

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