Expanding your business into a new market can feel a bit like wandering into the unknown - we know because we’ve been there, but fear not!
At Cognism, we’ve learned that with the right approach, the journey can be smoother than you might expect.
We recently chatted with Archita Fritz, a whiz at market entry strategies. Together, we explored the essential steps to effectively expanding the European market, sharing insights that can really set you up for success.
So, if you’re curious about the nitty-gritty of entering the European market and what strategies can lead to a successful expansion, you’re in the right place.
Understanding the landscape
Before you leap into any market, understanding the lay of the land is vital.
Each European country is a unique beast, with its own set of cultural quirks, regulatory requirements, and consumer behaviours.
As Liam Bartholomew, Cognism’s VP of Marketing, puts it:
“Lots of people view Europe as one big blob, but it’s fractured into many smaller bits. EU businesses and the environments they operate in vary widely.”
This means diving deep into local regulations, getting your head around compliance requirements, and understanding the cultural differences that could impact your approach.
Archita shared with us a stark example of how differently things can be perceived in different places, from when she was launching a medical device in France.
“In any other country we expanded into, there were no problems selling our product. However, we discovered that pushing a patient feet first on a stretcher was perceived as a symbol of death in France.”
Not exactly what you’re looking for when you’re selling heathcare products...
This had a huge impact on the sales in this region, requiring a change in how the product was presented.
This kind of insight is why localisation goes beyond mere translation; it's about truly understanding the local mindset.
One of our favourite ways of doing this at Cognism is to attend a local industry event before officially moving into the market.
This offers you the opportunity to be surrounded by your ICP, speak to them, and get immediate feedback on your product or service.
It allows you to gauge the demand level, understand your product category, and identify any possible blockers early.
Getting to know the local law
Another essential step is to familiarise yourself with the regulatory landscape.
For example, the UK has strict regulations regarding data protection and marketing practices, particularly under the General Data Protection Regulation (GDPR).
Not following these rules can result in hefty fines and a seriously tarnished reputation. So, building a solid compliance framework isn’t just advisable; it’s non-negotiable.
Additionally, getting a handle on the competitive landscape is just as crucial. Who are your competitors? What are their strengths and weaknesses? Archita pointed out that:
“Analysing your competition gives you insights into potential opportunities and gaps in the market.”
This knowledge can inform your strategy and help you position your offering effectively.
Building customer intimacy
Once you’ve got a good grasp of the market, it’s time to build customer intimacy.
This involves forging strong relationships with your target audience and really understanding their needs and preferences.
Archita said:
"Relationship arbitrage is about leveraging these relationships to gain insights that drive your marketing strategy."
Creating customer advisory boards can be a fantastic way to gather feedback and insights directly from potential customers.
These boards let you engage with your audience, get a feel for their pain points, and tweak your offerings accordingly. This customer-centric approach not only helps tailor your products but also fosters loyalty and trust.
Archita said:
“I have learned from my mistakes and never again will I bring a new product to market without speaking to customers right from the beginning.”
“Coming from the US, I had customer advisory boards in the UK, France and Germany, and it was life-changing. It helped us with market entry, positioning, messaging and launching new products to market so much faster.”
Implementing customer feedback loops through surveys and interviews can provide valuable information that shapes your product development and marketing efforts.
By actively listening to your customers, you can better align your offerings with their expectations—after all, who knows better than them?
Local expertise and cultural sensitivity
Bringing in local expertise is another crucial factor in ensuring a successful expansion. Hiring folks who understand the local market dynamics can provide insights that might otherwise slip through the cracks.
Local experts can guide your marketing strategies, ensuring that they resonate with the target audience.
Archita said:
“For example in Switzerland, we found that if we sent in a Swiss rep who spoke both French and German (two of the main languages spoken in Switzerland), they wouldn’t have the same level of credibility that a German-speaking rep from the German part of Switzerland would have, and the same for the French-speaking rep from the French part of Switzerland.”
Marketing messages that hit the mark in one region might flop in another European country.
Having local knowledge offers the chance to tailor your messaging to fit local customs and expectations, which can significantly enhance your chances of success.
Here’s another example:
Archita and her team benefitted from local knowledge and experience in France, which told them to avoid social media campaigns.
This was because, in France, they’d be held accountable for every claim made and would need to have sufficient evidence for all statements posted.
Instead of relying on typical social media campaigns, they turned to training workshops on ergonomic practices, providing value without violating strict advertising rules.
This flexibility allowed them to build brand awareness while navigating complex local guidelines.
Investing in local partnerships can also bolster your credibility.
Teaming up with local businesses and influencers not only amplifies your reach but also instils confidence among potential customers who often prefer established names in their area. It’s all about who you know!
Product localisation
Product localisation is more than just translating your materials into new languages.
It’s about adapting your offerings to meet local preferences and standards. This might involve tweaking product features, packaging, or even your pricing strategies.
As Liam puts it:
"Localisation is about making your product feel native to the market. It’s about more than just language."
Archita’s team learned this through experience when they initially assumed a product designed for one European market would fit seamlessly into others. Well, that didn’t turn out well.
It quickly became clear that different countries had different ways of using the same product, prompting her team to make adjustments based on local feedback. This helped them avoid missteps and improve adoption rates.
Consider conducting focus groups or surveys to understand how local consumers perceive your product. Gathering feedback can help you identify necessary adjustments, ensuring that your product meets the expectations of your new audience.
Additionally, understanding local buying habits and preferences can shape your localisation strategy.
For example, in the UK, consumers may have a preference for sustainable or ethically sourced products. Incorporating these aspects into your offerings can significantly boost your appeal.
Marketing strategy
Once you’ve localised your product and built a solid foundation of customer intimacy, it’s time to craft a tailored marketing strategy.
Start by identifying the most effective channels to reach your audience. In Europe, digital marketing is huge, so utilising social media (maybe think twice in France, though!), SEO and content marketing can be powerful tools in your arsenal.
Content marketing, in particular, can establish your brand as a thought leader in the industry. Sharing valuable insights, case studies, and industry trends can resonate with your target audience and position your brand favourably.
Not only this, but content marketing can allow you to start to ‘warm up’ a region before you put any boots on the ground there.
Liam said:
“There can be a lot of risk with starting in a new region. What worked in one place has no guarantee of working in another. And moving into a new country is expensive! Especially if you miscalculated the demand!”
“An easy way to mitigate this risk is to put some marketing spend in the region first and monitor how it’s received. That could come in a number of forms, such as paid ads, SEO or in-person events.”
Utilising social media to engage with your audience can also boost your reach.
Archita said:
“Social media is not just a marketing tool; it’s a platform for conversation. Engaging with customers directly helps build rapport and trust.”
Whether through informative posts, interactive Q&A sessions, or user-generated content, a strong social media strategy can significantly enhance your visibility and customer connections.
Testing and adapting
As you roll out your marketing strategy, keep in mind that testing is key. Conduct pilot campaigns to gauge the effectiveness of your messaging and tactics. This allows you to make real-time adjustments based on performance data and customer feedback.
Archita said:
“Flexibility in your approach is essential. Markets are constantly changing, and so should your strategies.”
Be ready to pivot if something isn’t clicking with your audience. Continuous learning and adaptation can lead to long-term success.
Incorporating A/B testing in your campaigns can provide insights into what resonates best with your audience. By testing different messages, visuals, or channels, you can refine your approach to maximise engagement and conversions.
Monitoring performance
Once you’ve established your presence in the European market, it’s vital to monitor your performance closely.
This involves setting key performance indicators (KPIs) to measure success. Track metrics like customer engagement, conversion rates, and customer satisfaction to gain insights into your performance.
Data-driven decision-making is key to understanding what works and what doesn’t. By analysing your performance metrics regularly, you can identify areas for improvement and make informed adjustments to your strategies.
Archita added:
“It’s important to not just track numbers but to analyse the story behind them. Understanding why certain metrics are up or down can provide valuable insights for future strategies.”
The importance of networking
Finally, building a strong network in Europe can open doors to valuable opportunities. Attend industry events, engage in local business communities, and connect with other professionals in your field.
Networking can lead to partnerships, collaborations, and referrals, all of which can accelerate your growth in the new market.
Archita said:
“Don’t underestimate the power of relationships in business. Networking is a crucial component of establishing your presence and credibility.”
Engaging with local businesses and participating in industry-specific events can help you build beneficial connections for your growth.
Key takeaways
- Conduct thorough market assessments: Understand the unique dynamics of the European market, including regulations and cultural differences.
- Build customer intimacy: Foster strong relationships with potential customers through engagement and feedback mechanisms.
- Leverage local expertise: Hire individuals with local knowledge to guide your strategies and ensure cultural relevance.
- Focus on product localisation: Tailor your offerings to meet local preferences and standards.
- Craft a tailored marketing strategy: Utilise digital channels and content marketing to establish your brand presence.
- Test and adapt: Continuously refine your strategies based on performance data and customer feedback.
- Monitor performance: Set KPIs to track your success and make data-driven decisions.
- Build a strong network: Engage with local professionals and businesses to open up opportunities for collaboration and growth.
The road ahead for European expansion
Expanding into the European market can be a rewarding endeavour if approached strategically. By understanding the landscape, building customer relationships, localising your product, and crafting tailored marketing strategies, you can set your business up for success.
As our podcast conversation highlighted, the journey may come with challenges, but with the right approach, you can navigate them effectively.
For businesses considering entering the European market, remember: preparation and adaptability are your best allies.
Take the time to warm up the market, test your strategies, and build demand before making significant investments. With careful planning and execution, your expansion into Europe can lead to exciting new opportunities and growth.
