Market Entry Study
Making the right choice as to whether to introduce a new product or enter a new market hinges on obtaining accurate, insightful information. Clients typically struggle to understand new markets because they do not have the knowledge that one gains from years of participating in a market.
RSR recognizes the unique nature of entering a new business and has developed a process specifically designed to study a new market. This process relies on the constant interaction between RSR and the client so that both jointly learn about the market, its segmentation, the customer base, and the competition. The result is that the client gains knowledge of a market as if it had participated in the business for years.
Benefits Achieved
Determine the attractiveness of the market to the client.
Key Components
In a market entry study, RSR typically answers the following:
- The market potential for the product
- Relevant market, product, and geographic segmentation for the product or service
- Understanding the drivers of demand
- Key regulations impacting the market
- Projected growth rates for the product
- Key barriers to entry
- Key current and projected competitors
- Similar products that competitors are developing
- Customer’s view of the product and key suppliers
Relevant Case Studies
Re-prioritizing Which Vertical Markets to Pursue
With deteriorating demand in certain high-volume, vertical market segments, an industrial equipment supplier was concerned about its growth prospects. Management believed that revenues were too concentrated in a few sectors, and that overexposure to declining segments...
Investigating Opportunities in New Market Segments
An industrial equipment supplier recently reorganized to align itself with specific market segments. Two segments of potential interest were largely unfamiliar to the Client. Thus, the Client was unsure how to approach these two new vertical markets. In the past...
Evaluating the Addition of a Substitute Product
An industrial equipment supplier was concerned that one of its core products was being threatened by a potential substitute that served the same markets but utilized different design. Many of the client’s largest customers were using both the client’s product and the...
Expanding into a Fast Growing Regional Market
An instrumentation supplier was evaluating the best means to enter the fast growing US oil and gas shale market. There are many potential areas to pursue, and the Client needed to choose the best plays to enter and the appropriate entry strategy. Some of the Client’s...
Evaluating the Market Opportunity for a New Product
An instrumentation supplier was evaluating whether to develop a related measurement product for an emerging application. The Client believed the new product could spur growth given the growing global demand for measurement in the new application. However,...
Penetrating an Adjacent Market
A successful energy equipment supplier had directed resources to grow in an adjacent market segment. After winning a few large project orders, sales growth faltered. The Client feared they may be operating at a competitive disadvantage relative to the market leaders...
Assessing the Critical Success Factors for Market Entry
A leading industrial products company was considering entry into an adjacent market for its current technology. The company had not previously sold into this adjacent market because the product requirements appeared to be different. Upon further review, however, the...
New Market Penetration
Shortly after consummating a highly coveted acquisition, an industrial controls company was assessing how to grow the newly acquired products. The Client believed it could use its well-developed channel to grow the business in selected strategic country markets;...
Re-Starting a New Product Launch in a Changed Marketplace
A leading industrial automation company had postponed a new product launch due to deteriorating global economic conditions. Internal budgets had been slashed, and customers were unlikely to approve spending for the proposed new product, so the launch was postponed. As...
Re-investing In Product Development
After spending most of its time and resources, restructuring the company to weather the financial downturn, a leading industrial automation company decided to revisit its five year growth plan. In the plan there were a number of assumptions regarding market trends,...
Pursuing Alternative Energy Segments
A leading industrial equipment manufacturer is trying to expand its footprint into alternative energy to include CNG, biofuels, solar, wind, and related areas. In doing so the Client assembled a team from its key divisions to assess the market potential in each of the...
Defending Your Position in an Emerging Market
A leading process control manufacturer had established a dominant position in the alternative energy market. Approximately 70% of its products were sold in developing countries, such as India, Pakistan, Brazil, etc. With the rapidly growing and evolving market, the...
Is the Available Market Large Enough To Justify the Development Program?
A leading controls manufacturer developed a technology that had potential advantages in the aerospace business. Although the Client participated in some segments of the aerospace market, it was unable to determine with confidence to what extent the technology could be...
Why Did The New Product Flop?
A leading instrumentation company recently introduced a product that was very poorly received in the market. The client believed the product would be very successful based on feedback from the field that indicated that customers were not getting the product as...
Developing An International Marketing Strategy
A leading instrumentation company was forced to evaluate its marketing strategy in the rapidly consolidating market it serves. The Company’s strategy had been to be a leading full line integrator exploiting cost advantages and strong customer relationships. Its...
From Component Supply To System Integration
A leading controls manufacturer was at a strategic crossroads, as its top customer had recently changed its procurement strategy, opting to purchase more integrated systems and fewer individual components. The Client was concerned that other customers may also be...
Taking New Products To New Markets
A software company was interested in broadening its product offering up the supply chain. The Client believed the new product should be marketed to different types of customers as well as other decision makers within a customer organization. As such, the software...
Assessing Market Potential
A leading aerospace equipment and system supplier is trying to increase the control content it manufactures on commercial aircraft. One option for achieving this is to develop a critical aircraft control product line that it currently sources from another supplier....
A Marketing Plan For New Technology
An electronic instrumentation manufacturer had developed a new measurement technology, but was not realizing its revenue goals with the new product. The company already manufactured similar products using older technologies, and was uncertain how to transition to the...