Purpose and background:

Market entry strategy could be a planned distribution and delivery technique of products or services to a replacement target market. Nevertheless, it’s also implemented in helping novice brands to establish themselves in a pre-existing market or alternatively to establish themselves in a non existing market due to the uniqueness of their product/service.

Scope and responsibilities:

Depending on the nature of service or product to be introduced, it’s estimated as to which methodology is appropriate for a brand. While doing so, one of the most important aspects is to understand the legal gateways and get prepared with expenses that may ensue in this process.

Procedure and methodologies:

1. Networking: For entry into an unexplored market, networking is an apparent approach. Networking can be through acquaintances, social media, joining and pitching at business networking organizations (like BNI, TiE).
2. Franchising your brand: The good thing about franchising is that it’s one of the easiest ways to break into new markets. All you have to do is take your existing, successful business model, find a franchisee in your target market, build out the franchise, and open your doors.
3. Direct exporting: Your friends indirect exporting are your agents and distributors. These individuals act as the branch between you and the stores. One has to work out shipping logistics and everything else of that nature – but on the surface, direct exporting is very similar to selling products in your domestic market.
4. Joint Ventures: A JV (joint venture) is a partnership between the two companies or people. They join up and become invested in some sort of business project – the investment is nearly always an equal 50/50, and profits are split accordingly. Usually, the two companies work together on one particular venture to try and succeed in staying separate from each other.
5. Turnkey solutions or products: Turnkey” is a pretty apt name – a “turnkey product” is where you build something from the ground up, and whoever you turn the product over to just needs to “turn the key” before he or she is prepared to go.

These are some of the best contracts to get because they almost always come from governments. On the flip side, everyone knows that these are some of the best contracts to get, and you’ll often be competing with other foreign and domestic firms for the contract.     

6)  Licensing: It means obtaining permission from a company (licensor) to manufacture and sell one or more of its products within a defined market area. The company that obtains these rights (the licensee) usually agrees to pay a royalty fee to the original owner.