“Too many companies perform inadequate amounts of research prior to launching a product or service in a new market,” stated its head of strategic, economic and consumer insight, Sarah Boumphrey.
“This is problematic because some markets simply might not work. Utilising Euromonitor’s four pillar model before entering new markets provides a better understanding of the needs of consumers and the business environment in countries of interest.”
The strategic market analysis provider has released an e-book titled, “Succeed in Emerging Markets: Selection, Strategy and First Steps,” which focuses on a four pillar model to assist businesses in emerging market entry.
According to Euromonitor, the pillars include the market, population, access or the reality of market entry and the business environment in a particular market.
“The first pillar is market and it incorporates macroeconomic stability, consumer market size, growth and openness. The second pillar is population and focuses on demographics. This assists in understanding how a business product or service will fit into a competitive landscape,” it said.
“The third pillar focuses on access, or the reality of market entry. If a country is not easily accessible, businesses will not successfully produce goods in the market or reach consumers. The final pillar reviews the business environment, with emphasis on the regulatory environment and corruption.”
However, it added that its market entry strategy model should be tailored on a case-by-case basis based on sector-specific and business-specific factors to ensure the best information is used for each business.