- Travel to the country and explore local stores.
- Study country profiles.
- Test your product online to gauge demand in that country.
Demographics: Focuses on characteristics like age, gender, education, marital status, and household size.
Motivation: Examines why customers buy a product, such as seeking pleasure or avoiding discomfort (Thorndike’s Law of Effect) or fulfilling needs like those in Maslow’s Hierarchy (physiological, safety, belonging, esteem, and self-actualization).
Economics: Considers how much disposable and discretionary income the target market has.
- Direct competitor: Pepsi
- Indirect competitors: Juice, milk, water, candy, and chips
Lower production costs: Leading to lower prices for customers, often achieved through economies of scale.
Lower distribution costs: Allowing for lower prices when companies have local manufacturing.
Product differentiation: Unique features that set the product apart from competitors.
Brand equity: When customers have a positive association with the brand, built over time.
- Primary research: Collecting data firsthand through surveys or interviews. It’s tailored to your needs but can be time-consuming and expensive.
- Secondary research: Using existing data, like government reports or industry studies. It’s easier to access but might not be specific to your needs.
Pros:
- Acquisition strategy: Less cultural mistakes will occur because the acquired company is already adapted to the local culture
- Centralized marketing strategy: Saves marketing costs
- Decentralized marketing strategy: More likely to succeed in appealing to the local customers
Cons:
- Acquisition strategy: There may be cultural conflicts between the large company and the smaller one it acquires.
- Centralized marketing strategy: Cultural mistakes are often made
- Decentralized marketing strategy: Expensive