Product Ideas for Foreign Markets
Distance is no longer a barrier in the business world. Trading barriers and laws are changing as well to adapt to the improvements in the communications technology that is shrinking the globe. Thinking globally is no longer a luxury for multi-billion dollar corporations. Small businesses are thinking globally as well. One of the best methods to break into a foreign market is by hand-picking or designing a product that best represents your brand, yet tailored for a particular market.
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Market Research
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Researching the country of interest is the first step to entering a foreign market. Understanding how the industry works in that country could save you millions in losses. Know your competitors. Commissioning research reports from market analysts based in that country will give you insight into what sells and who the people are that buy those products. You will also have reports useful in Identifying other potential opportunities. In the book, "International Marketing Strategy," Isodel Doole writes that one of the major causes of failure when companies cross international borders is because they fail to prepare for legal battles when it comes to enforcing their patents and trademarks in foreign countries, whose courts may show bias to the locals. Study business laws in the countries that you plan to enter and work with a legal team based in that country.
Marketing Considerations
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When you choose a product, attach some marketing concepts to it to determine how well you can market the product in that region of the world. Visualize how that product can be packaged and how it can be presented in the stores. For example, a fine writing instrument or other business product for the under-served Japanese businesswoman can be introduced to the Japanese market in a box with pictures of cherry blossoms. In Japan, one of the symbolic themes attached to cherry blossoms is symbol of good fortune. Your studies would show that Japanese marketers use these symbols already. Understanding symbols like these help you avoid offending consumers in other markets who have different perceptions about marketing messages.
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Cultural Perceptions
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Analyze the strengths of the product as it would be perceived in the foreign market you're targeting. A United Nations report states, "Many global opportunities have arisen because of the clustering of market opportunities worldwide. Organisations have found that similar basic segments exist worldwide and, therefore, can be met with a global orientation." Look to market and sell products that have positive connotations in multiple markets. For example, silver necklaces can be sold in your home market as a beauty accessory and sold in a spiritually centered country like India as a natural way to keep bacteria and fungi from attacking the body. Your silver stock could also be used for medical equipment, silverware and electrical products in this country.
Joint Ventures
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Smart companies following the global path utilize the resources already available in the country. Harvard Business School professors Tarun Khanna and Krishna G. Palepu write, "The thorny relationships between ethnic, regional, and linguistic groups in emerging markets also affects foreign investors." A Joint venture with a corporation with solid market share reduces the negative impact of bad investment choices. You can buy ownership in the company, buy the patent to one of their successful products or leverage the introduction of a new product through their existing channels. You can capitalize on their local distribution networks, sales agents and strategic partnerships. In Iran, pharmaceutical company Eltiam already has a foothold in the market. If you wanted to break into that market, you could introduce a fertility pill using their distribution channels.
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