Search for Markets
Suresh George
Outline of the lecture
• The Process of Searching for Markets
• The Module 2 of the GMMSO3 software
• Resources and databases for the search
Background
• Following on from company situational
analysis, is your company a candidate for
Internationalization?
• Do you have a product for
Internationalization?
• Seek Markets for the company
Process
• A 4 step methodology
Source:Janavaras.B, Paladini .S and George S (2013). Going Global: A Practical Guide Pearson
Step1 - New Markets
• Research and select countries where you feel there are
opportunities for the expansion of your selected product or
service
• Select the criteria that are essential in determining high
potential country markets for your company's
product(s)/service(s)
• Determine the relative importance (weight) of each criterion
on a scale of 1-100
• Enter the value of all criteria against each market
• Determine the best possible markets from this Grid
• Can you create a new market space?
Can you create a new market?
• Use innovation to create a new market space
• Looking Across Substitute Industries
• Looking Across Strategic Groups Within
Industries
• Looking Across the Chain of Buyers
• Looking Across Complementary Product and
Service Offerings
• Looking Across Functional or Emotional Appeal
to Buyers
Source: Chan & Mauborgne(2015)
SOME EXAMPLES OF NEW MARKET
CREATION
Bodyshop
• Is the Body Shop a Cosmetics Company?
• Reduced price, glamour, and packaging costs while
creating a new emphasis on natural ingredients
and healthy living.
Source: Chan & Mauborgne(2015)
Polo Ralph Lauren
• Built on the advantages of the two strategic
groups that dominated the high-end clothing
market—designer haute couture and the
higher-volume, but lower-priced, classical
lines of Burberry’s, Brooks Brothers,
Aquascutum
• emotional value of wearing an exclusive
designer’s name + low price
• Positions itself in the middle with options to
move up and down
Source: Chan & Mauborgne(2015)
Lexus
• Offers the quality of the high-end Mercedes,
BMW, and Jaguar at a price closer to the
lower-end cars
Source: Chan & Mauborgne(2015)
Source: Chan & Mauborgne(2015)
Indicators of Globalization
Step 2- Selection of criteria/variables to
rank the countries
• Select appropriate criteria! For example, if the
product/service is intended for adults over 65 years old, you should select the age
distribution criterion; determine how many adults are over 65 years old in a
particular country.
• The company’s target market is the most
important indicator of which criteria to choose
• Create an Analytical Grid
Step 3: Market evaluation
• Against each selected criteria, research and input the
values on the grid
• You will need to include the year the information was
collected, the unit of measure, the weight, and the
value.
• +ve and –ve relationships for the criteria
• Once the grid is completed and the values inputted
against each country, the grid should show the
country with the best potential for your
product/service.
• Your top Market should emerge from the Grid
DEMO OF MODULE 2 OF GMMSO3
References
• Janavaras.B, Paladini .S and George S (2013). Going Global: A Practical
Guide Pearson
• Kim,Chan, W & Mauborgne, Renée (2015) Creating New Market Space HBR
blog. Available on https://hbr.org/1999/01/creating-new-market-space, last
accessed on 10/02/2015
Useful Resources
•
•
•
•
•
AT Kearney Ideas and Insights (http://goo.gl/WnKQI )
Market Potential Index from Global Edge (http://goo.gl/Gm3vp)
World Integrated Trade Solution(http://goo.gl/pIoPO )
UNCTAD (http://goo.gl/Z2DY7 )
Suresh George resource base https://sites.google.com/site/theartofgoingglobal/