Value proposition: What is the strategy to enter and expand in a new Growth Market?

When considering to enter a new market or region, a company needs to assess the attractiveness of new Growth Markets, identify the right customers and evaluate what products or services to take to market at the correct price

Market potential - Key considerations:

  • Does the market offer enough value and  volume for investments to pay off?
  • What is the opportunity, size and growth rate of the particular sector?
  • What is the competitive landscape for the product/service?
  • What are the major trends in the sector and how are they evolving?

Customer segmentation - Key considerations:

  • Should Growth Markets be segmented by income, geography, culture and need?
  • Where do these target consumers live and what is their spending power?
  • How do target consumers prefer to purchase and how does this change across channels?

Product/Service and pricing - Key considerations:

  • Can target consumer segment be optimally addressed with existing product/service suite?
  • How can you be locally competitive and address customer preferences and regulations?
  • What is the pricing threshold for your target consumers?
  • What is the most appropriate positioning for your product to attract target consumers?

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