Foreign country market research & competitor analysis
If you want to invest your money in the development of new markets, it it wise to do some research first in the countries where you want to be active.
Whether the market for your product or service is growing or declining is mostly easy to determine. The exact growth percentage typically does not matter much.
What is more important, is how well your product serves the needs in the market, how you position it and what the strength of your competition is.
Research topics for new markets
Where it comes to assessing the viability of a product or service in a new market, we always look at the following aspects:
1. Regulatory compliance
Can the product be imported and sold in the country, what are import duties and are there any restrictions on service delivery? What are the investments to comply to all regulations?
2. Market needs
Is there a genuine demand for this product or service in the market and which aspects are decisive for the customers? What are common channels for marketing and sales?
3. Competition
How fierce is the competition and is there a clear market leader? Is there room for a new entrant and what happened to other companies trying to penetrate the market?
4. Investments
What steps are needed to enter the market and what are the related costs. How quickly can you expect revenue and what is a reasonable pay-back time?
We make these assessment with local people in over 30 countries around the world, who report in a similar way. This way you get a good comparison and you can total up the investments needed for global growth.
Concrete market analysis questions
Typically your market research will answer the following questions:
- What is the local market size and market growth?
- What are trends in the market?
- How is the value chain structured? What are the main distribution channels and market segments?
- What are your competitors and their market position
- What is a competitive price for your products and services on the market?
- What segments of the markets are currently underserved?
- What would be recommendations for entering the market?
The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.
With Trip.com you can compare flights and also book your hotel.
Hotellook compares different hotel sites so you always have the best rate.
Localrent connects you to national rental car providers per country.
Cultural bias in answering research questions
Cultural bias in answering research questions is a significant phenomenon that affects the validity and reliability of global studies.
In the United States, respondents tend to exhibit an extreme response style, often choosing the highest or lowest options on rating scales. This tendency can lead to more polarized results compared to other regions.
European countries show diverse response patterns. Western and Northern European nations, particularly Protestant countries, often display a preference for self-expression values and secular-rational attitudes. In contrast, Southern European countries may show more traditional value orientations.
The Middle East presents a unique challenge due to its complex socio-cultural landscape. Respondents in this region may be more inclined to provide socially desirable answers, especially on sensitive topics related to religion or politics. This can result in data that doesn’t accurately reflect true attitudes or behaviors.
In China, cultural norms emphasizing harmony and avoiding confrontation can lead to an acquiescence bias, where respondents tend to agree with statements regardless of their actual beliefs.
Indian respondents often demonstrate a strong acquiescence bias, particularly when presented with agree-disagree statements. This can result in artificially inflated positive responses.
Southeast Asian countries, influenced by collectivist cultures, may show a tendency towards middling responses, avoiding extreme options on scales.
Use TGM for first surveys in the country
Through TGMPanel, you can easily distribute surveys to check on the attractiveness of your products, what alternatives they use or what would be a good price level. Check their website!
Recommendations for competitor analysis
Competitor analysis is an important part of assessing how welcoming a market is for your product. Especially if you want to compete on price, delivery speed or service rather than on product differentiation.
If you product is not so different from the competition, then check:
- How do your competitors position themselves? On the high or the low end of the market? What is their pricing?
- What benefits do they advertise with?
- What means of communication do they use? How much would they invest in marketing communications?
- How big is the market share of each of your competitors. Is there one big player?
- How would they react when you enter the market. Would they copy your features or would they lower their prices? What is logical for them?
