Market access is the goal for any new or growing venture. But how do you expand efficiently and successfully, especially if the goal is International? Market expansion requires analysis and access.
AgriThority® market development experts deploy several steps when working with clients to plan market expansion across the crop production regions of six continents.
1. Define and quantify the needs your product fills.
Who needs your product benefits, where do they buy and why? This market analysis starts with product, moves to competition and price comparison, selection of distribution partners and launch methods. These critical components of a successful plan must be defined accurately with thorough evaluation of the opportunities and risks.
Consider all the sources of information about your target customers: their needs, their current practices, their supplier relationships and their capacity to buy. Existing market research and surveys help establish an in-depth understanding of growth rates, forecasted demand, competitors and barriers to entry. This is especially important when entering an undefined market with a novel technology.
Answering critical questions begins the prioritization process:
Does the product benefit and calculated value justify the purchase or their risk of trying a new technology or practice? What are the current practices you will attempt to displace? Prioritize the potential markets by customer value, not by pure volume opportunity.
2. Confirm requirements of each considered market.
What is the regulatory process and resources required from importation to production, logistics and compliance? Planning for expansion costs are measured in both monetary and time commitments. With new technologies such as biologicals, country requirements will vary. From importation to registration and data requirements, these variables are critical to detail and document for accurate planning. Questions to answer include: What are the internal capabilities? How much infrastructure, sales capacity and core competencies can be applied to expansion markets?
3. Prioritize optional target markets.
External and internal analysis then leads to defining go-to-market approaches. Where is the best fit for the products where needs exist? How well can the internal organization service these needs? What are the gaps in each target market that you can fill? What is the value of filling the needs, and will customers pay the price required? How mature is the market and what is the level of technology adoption in the targeted regions. An example is the new Brazilian industrial policy according to Forbes reporting: the plan is aimed at propelling national development with a focus on sustainability and innovation through to 2033. Brazil’s new industrial policy intends to stimulate productive and technological development, promote better jobs, attract investments, and increase international competitiveness. From a McKinsey report Brazilian farmers are increasing adoption of bio-based products to obtain better results in the field.
4. Develop Market Entry plan.
Build, buy or license are three common methods of market entry. Opportunities for each of these approaches will vary from market to market depending on the novelty of your product, existing competition and standard practices, especially if key growth targets are international. Again, what are the internal capabilities and resources required for each option? What is the estimated time to market entry, and can you sustain the effort to reach the growth trajectory? The business and investment case with an execution plan should include who needs to do what, when and how often are key milestones established?
5. Execute, execute, execute.
This final step is never complete. The options and assumptions around costs, risks and predictability will constantly evolve. Many factors outside of your control must be monitored and considered as each milestone is assessed. Mitigating risk of market entry begins with facts and stats thoroughly and thoughtfully analyzed, not hopes and promises.
Reach out to AgriThority® for your strategic and scientific development needs. Our international footprint, combined with our deep understanding of market and producer dynamics, helps you leap hurdles and overcome barriers to set up your products for success. Wherever you want to explore, we are your native guides.