Market Entry to Asia

A market entry strategy is the planned method of delivering goods or services to a new target market and distributing them there. For enterprises exporting products to Asia, it refers to establishing and managing new business relationship in Asia. It is important for new entrants to get enough information before making right decisions and finally achieving increased sales, brand awareness and business stability.

Importance of Sufficient Analysis for Market Entry

Effective international strategic entry enables a company to compete successfully in foreign market like Asia and it is the first step of a comprehensive framework for achieving a firm`s fundamental goals. Developing a strategy for a single, specified market is of great importance. With updated social, technological and economic changes, there should be a strategic planning for market entry. Many bigger multinational companies already have or are expected to their office or even factory in Asia. They want to enter Asia`s first-tier and even second-tier cities in Asia step by step. A successful plan for market entry will identify how and where will the company produce, get and sell its products, how will the company compete with its competitors and what are the key factors for success. All of these are very valuable for a company entering a new market in fast-growing Asia.

Methodologies

For an overseas enterprise to enter Asia, Global Stats offer professional foreign market analysis. A general process is given below and more details to be added in accordance with enterprise`s requirements.

1. Custom- tailored PEST or PESTEL analysis
  1. Analysis on political, economic, social and technical factors based on our data resources.
2. Custom-tailored Porter`s Five Forces model to identify market potential
  1. Analysis on suppliers, competitors, consumers, substitutes and market entry.
3. Developing core competencies
4. Evaluating costs, benefits and risks
5. Identifying market selection, market attractiveness and market barriers
6. Identifying timing of the market entry (e.g. waterfall strategy, sprinkler strategy, wave strategy)
7. Designing market entry strategies
  1. Choosing a mode of entry. There are advantages in ownership, location and internationalization for overseas enterprise.
  2. Choosing exporting to foreign markets, e.g. intra-corporate transfers
  3. We give detailed valuable considerations on government policies, marketing concers and distribution issues, export intermediaries and international licensing.

Market Segmentation in Asia

Segmentation is the process of breaking down the market into groups which have common characteristics, attitudes and behaviors. This is essential in identifying customer needs and wants. Here, Global Stats make efforts to bring you largest benefits started from market segmentation in Asia. We provide you better matching of customer needs, which helps to enhance profitability, create opportunities for growth, enhance the effectiveness of targeting communication, improve customer retention for your product and enlarge market share.

Generically, there are three approaches to marketing. However, in Asia, we mainly advise you to pay attention to concentrated strategy or differentiated strategy.

Concentrated or differentiated strategy in Asia

In the concentrated strategy, a firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, for Asia`s cosmetics market, a firm focuses on consumers with low price sensitivity who will choose branded products with more effective but less harmful ingredients. Also, even branded cosmetics companies follow the differentiated strategy: they offer normal expensive products for mid-to high-end consumers as well as a supreme luxury brand for the supreme group of the pyramid.

Market Segmentation criteria

Note that segmentation calls for some tough choices. There may be a large number of variables that can be used to differentiate Asian consumers of a given product category. Thus, we need to determine which variables will be most relevant in distinguishing different groups of Asian consumers and in the process of market segmentation in Asia. The first one is demographic and social-economic variables which essentially refer to personal statistics such as income, gender, education, marital status and family structure. Another basis for segmentation is behavior. Some Asian, especially elderly people, are brand-loyal and tend to stick with their preferred brands even when a competing one is on sale. Some consumers are frequent users of a product while others are not. For example, research conducted by the wine industry shows that some 80% of the product is consumed by 20% of the consumers‐presumably a rather intoxicated group. Also, there are psychological variables. While some consumers want to outstand from the crowd, others want to be as similar to others. Furthermore, we work to seek different benefits that consumers really value when selecting a product or a service.

Market research in Asia

Market research is the study of problems, techniques and other aspects of marketing and related decision-making and implementation of decisions. Global Stats applies a hybrid of marketing and research, providing both basic and applied research where immediate short-term concerns are considered with fundamental problems. The research takes various market participators such as consumers, buyers and sellers in to consideration.

As the Asian customer holds the key position in all circumstances in Asia and needs to be motivated to purchase the maximum of the enterprise`s products and services, it is necessary for Global Stats market researchers to interpret market requirements and relate them to available sources and responsibilities of the company.

The Objectives of our Market Research

For enterprises that want to enter Asian market or increase their market share in Asia, Global Stats conducts high quality market research based on efficient data collection system and provide effective suggestions for implementation. Our service covers a wide range of areas, including electronics, health care, luxury, auto, nursery, FMCG such as food, cosmetics, etc. Global Stats better matches customer needs through improvement of customer retention, more effective targeting of communications and enhancement of the enterprise`s influence. We help the enterprise to understand why customers buy a particular product, to know the marketing opportunities and challenges. With the discovery of competencies of the enterprise, we design an effective mix of right action, considering branding, product development, and distribution channels in Asia.

Methodologies

Global Stats`s market research is standardized with clear steps.

1. Identifying the marketing problem or setting the objectives of market research.
2. Developing a marketing plan or studying the old research findings.
3. Designing the marketing research strategy in accordance with the requirements of the problem.
4. Collecting data.
5. Analysing data collected
6. Preparing the research report.

For example, for a toothpaste company, GLOBAL STATS may design its market research like the one below.

1. Descriptive research
2. Collecting primary and secondary data
3. Choose questionnaire as a survey method and design questions.
4. Buy sample toothpastes for the survey with 500 people (simple random sampling in a large supermarket)
5. Interviews with managers in toothpaste industry.
6. Mode of collecting data: For primary data (the survey mentioned), the respondents will be chosen randomly and requested to grant interviews. The questions will be asked in a predetermined sequence. Secondary data will be collected from various books, journals and reports (both published and unpublished).
7. Data processing: using tables to indicate main points and give inferences.

Global Stats offer statistical analysis and model analysis tools to build its analytical marketing research system. For statistical analysis, we apply regression analysis, correlation analysis, cluster analysis, factor analysis and conjoint analysis. While at the same time, we build new model for specific business based on a selection of optional production, distribution, pricing, market selection and media mix models

Importance of Marketing Research in Asia for Overseas Companies

Market research is a very useful tool in enhancing the decision-making ability of the marketer in Asia`s dynamic environment today. With the change from a seller`s market to buyer`s market, and fast economic and social changes In Asia, it is necessarily important for overseas enterprises to acquire information on consumers` needs, preferences and evaluation from the consumer, especially Asia`s new consumer group.

Market research in Asia provides information for overseas enterprise the access to contact Asian consumers. With clearly stated issues being investigated, a systematic and formal procedure in collection and analysis, market research communicate the study findings in a manner to help reach marketing decisions.

Expanding Your Business Globally

Our company specializes in international distribution, serving as a bridge between European and Asian markets. We enable businesses to expand their reach by facilitating the introduction of their products into new territories, helping them establish a strong foothold in foreign markets.

With our extensive network of partners, deep industry expertise, and a strong understanding of regional regulations and market dynamics, we provide comprehensive support throughout the entire distribution process. From market analysis and strategic planning to logistics, compliance, and localized marketing, we ensure a seamless and efficient market entry for our clients.

By leveraging our connections and experience, we help companies navigate the complexities of international trade, minimizing risks and maximizing opportunities for growth. Whether businesses are looking to expand their presence, reach new customers, or optimize their distribution channels, we offer tailored solutions that drive success in the global marketplace.