What are the biggest challenges to entering new markets and how do you overcome them?

There is no single way to overcome the challenges to new market entry. Conversely, those challenges/obstacles should be determined before products or strategies are developed, to prevent substantial expenditures in the midst of entry. Once you understand which obstacles/challenges must be tackled, you determine how to overcome them. In a rush to move things along, many organizations fail to recognize the importance of carefully evaluating challenges before jumping all in.

 

Carlos Escobosa commercial and administrative director of The Residences at Solaz says that in Mexico, where an important percentage of sales are directed to foreign buyers north of the border “the biggest external challenge is the negative perception that North Americans have of Mexico.  The best way to overcome negative perceptions is through  PR campaigns focused on the value, security of investments, and levels of capital being invested. In addition, there is often an internal lack of knowledge of what a consumer wants or needs in our industry (Travel & Leisure and recreational Real Estate)”. Cindy Collins founder of Mining Technology Partners told us that  “the approach for us would be the same as it was in coming into a new territory in our market of mining & metals. Except now  we have greater access to online resources such as advertising, SEO marketing and so on.  We are working to take advantage of this … with a new website, podcast and other content.  This is in addition to face to face meetings…it is more than about effective marketing, it comes to relationships”.

Rahul Samant CEO of Rehabtronics stated that “…the biggest challenges include regulatory, sales, distribution, and marketing. Typically to overcome these we enter markets where we have first established a strong sales and distribution partner that understands the local issues in this context”. Alejandro Godoy founder of Seafood Business Solutions adds that “entering new markets is all about understanding the demand. But on the other hand, explaining and demonstrating your product and its benefits in comparison to others” is key.

The research and development phases of a project often seem protracted, but it is essential to prepare and take your time to do it right. As noted above, the key issues to keep in mind for overcoming barriers are marketing, a clear understanding of demand, and relationship building.

Each organization has its own way of navigating areas of opportunity. Some companies are well versed in entering new markets, have strong processes and count on the necessary resources to do so effectively. For many others, hiring a consultant the most effective way to define specific challenges and design a strategy for tackling them. The avenue offers a way to overcome a lack of initial internal capacity within an organization, and support capacity building in an effective way; while continuing to move forward with the due diligence required for new market entry.  In addition, consultants can assist in overcoming sensitive subjects, as they can bring an impartial opinion and an unbiased eye, as is mentioned in an article by Alex Nuth  titled “Why Companies Really Hire Consultants” .

In a nutshell, taking the necessary time and doing your homework will minimize risks and maximize results.

This article is part 3 of 3.

In case you missed Part 1: Top 4 Challenges to Business Development. 

In case you missed Part 2: How important is it to develop strategic relationships and contacts inside target markets?

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How important is it to develop strategic relationships and contacts inside target markets?

The importance of making strategic contacts is fundamental to success – particularly when expanding into new territory. Relationships facilitate market penetration, assist in identifying new audiences, and measuring product performance. Partnerships can be formal or informal and require different levels of commitment in order to keep the relationship beneficial.

 

Rahul Samant CEO of Rehabtronics told us that… “it’s very critical to establish strong sales and distribution channels as well as relationships with key opinion leaders”. Cindy Collins founder of Mining Technology Partners noted relationships are …”  huge and the focus of [her] company. [They] put providers together with contacts in Mexico and help them with distribution or [creating a] sales network.  Not only this, but to find references and the who’s who of using your products… this industry [mining] is very dependent on the usual early adopters.  We are often asked for who is using our customers’ products, especially for the more innovative or game changing products” . Alejandro Godoy founder of  Seafood Business Solutions highlighted “…it is very important to develop relationships with key decision makers, specialty seafood buyers in new markets.” Carlos Escobosa Commercial and Administrative Director of  The Residences at Solaz observed that “contacts in target markets offer a direct line to what consumers in those markets want, and most importantly, how to reach them in a cost-efficient way”.

This article is part 2 of 3.
In case you missed Part 1: Top 4 Challenges to Business Development.

Top 4 Challenges to Business Development.

There will always be a variety of challenges to face in order to achieve successful business development. In pursuit of fresh perspectives, we interviewed business people from different industries including Fisheries, Med-Tech, Mining and Travel & Leisure.  In the first of a series of posts on the subject, we explore the answers to our initial question: What is the biggest challenge faced by your industry today?

The top 4 responses – in no particular order- were the following:

•     Innovation
•      Sustainability
•      Regulatory Barriers
•      Security/Image

What is interesting is that the challenges identified by each respondent are not mutually exclusive to the sectors. In fact, each of the industries represented faces more than one at any given time. Cindy Collins founder of Mining Technology Partners, identified innovation as the primary challenge to the mining industry. She noted that “…the need for innovation is great due to minerals being more difficult to find and financing being in other industries such as tech…  This is great for innovative providers of technology and services and the combination of the two”. Alejandro Godoy founder of Seafood Business Solutions, identified sustainability as “…the current low captures of wild seafood has increased all seafood prices… and aquaculture needs fish-meal to farm species. Seafood needs better sustainable standards to help future industry growth”. Rahul Samant, CEO of Rehabtronics said that “…in the medical device industry there are many challenges: Regulatory, Export barriers, R&D costs, health care procurement and adoption… Its very difficult to say one challenge that is the biggest, but if I had to I would say the pace of Health Care adoption which is slow in-part due to regulatory barriers”.  Carlos Escobosa Commercial and Administrative Director of The Residences at Solaz identified “overall security and image issues that affect Mexico as a whole”.

The first step to overcoming such issues is identifying them. That also allows companies to seize on any areas of opportunity that present themselves by dealing with them in an effective way. Some barriers are more complex and systemic such as threats to environmental sustainability. Failing to address challenges early on risks creating unnecessary obstacles or complications in the future.

This article is part 1 of 3.

Case Study: Fly and Buy Discovery Week Campaign

Sinclair and Ruiz promoted and coordinated a Discovery Week trip for a developer client who was seeking to promote awareness of their new rental and property management service; along with the remaining units available for sale in their latest condominium project.  The campaign was designed to convert leads obtained through different marketing efforts into clients.

Our team assisted with the design and implementation of the Discovery Week invitation and travel logistics. In order to engage with the leads, we designed a communications strategy to speak to the needs and emotional wishes of the prospective clients. We delivered this communication strategy via inbound marketing efforts, and providing easy contact with our branded representatives for interested parties. Upon reaching the desired level of engagement we maintained frequent communication with the prospective clients to answer questions, assist with travel arrangements, collect any required fees, and increase excitement about the Discovery Week.

To support our developer client, assisted in the design of the Discovery Week Schedule, in order to optimize the possibility of obtaining successful fly and buy sales results.

At the campaign conclusion, our client obtained a 52% conversion rate of prospective clients that paid their own flight and a discounted condominium rental rate to spend a week at the units available for rent. In addition to earning new rental clients, our client sold condominium units by the end of the Discovery Week, thus generating a short term return on their investment.

 

Contact Sinclair and Ruiz today at info@sinclairandruiz.com to learn how we can design and manage your successful Fly and Buy campaign. www.sinclairandruiz.com

Selling a Destination in Less Than Ideal Conditions

Many travel and tourism destinations face challenges because of  the ongoing economic downturn. Others additionally face negative press regarding environmental issues, violence, and civil unrest; as well as misinformation.  Therefore destinations must  constantly evaluate their situations and take the necessary measures required to survive and thrive at any given time. The following are a few points that should be considered:

 New Markets – When a traditional market does not respond, destinations must adapt and reach-out to new markets. While traditional markets should not be ignored or forgotten, destinations need to expand their reach.

 Focus Budgets– It is important to target limited funds on very specific areas. Destinations and private organizations must resist diluting their investments by trying to cover as much market as possible. It is amazing what can be achieved with limited budgets if they are applied effectively and consistently.

 A Balanced Approach – Marketing efforts should be directed to the consumer. Tourism and recreational real estate marketing strategies often rely heavily on third parties such as tour operators, travel agents, and brokers to connect with consumers. Though third parties continue to be essential players, consumers increasingly make purchasing decisions based on their own research and peer reviews. Therefore communicating directly with existing and potential clients is a key element in any successful campaign, as are great customer service and ongoing client care.

Education – Destinations should reach out to consumers and educate them about the competitive advantages of their brand. Inform consumers what the destination offers and clarify misinformation.  In addition, communicate what the destination is doing to correct issues that displease consumers.

Speak the Consumers’ Language – Take into account language and cultural nuances to make sure the message being heard by the market is the one you are trying to transmit.

Your Mazatlan Brings Events to Regina, Saskatoon and Edmonton

El Cid Real Estate and Walfre Real Estate will bring a taste of Mazatlan to Regina, Saskatoon and Edmonton on October 14, 15 and 16, respectively.

El Cid Real Estate and Walfre Real Estate will kick-off the  “YourMazatlan” campaign in Saskatchewan and Alberta this October. The campaign – which is also sponsored by the Mexico Tourism Board and the State Tourism Board – will provide a platform for Americans and Canadians who travel to Mazatlan to share their experiences. Thus, travelers who are new to the resort can learn about it through their peers; and Snow Birds will have the opportunity to share their thoughts.

The cocktail receptions, organized by Sinclair and Ruiz, will be a social medium for guests to meet new people and learn about wintering in Mazatlan. A brief presentation will discuss cost of living, healthcare and investment in the city. Several prizes will be raffled  – including accommodation at El Cid Resorts. For further information and to register for the events, please visit www.yourmazatlan.com.

If you don’t live in one of the city’s where the cocktail receptions are taking place, check the website after October 18^th for promotions open to residents across North America and your opportunity to share your experiences.

About the Hosts:

El Cid was one of the first master- planned resorts in Mexico and now boasts 4 hotels, a gated community, 27-hole golf course, Marina and Country Club in Mazatlan; and hotel resorts in Cancun and Cozumel. El Cid is home to the largest community of Americans and Canadians in Mazatlan and continues to be the most exclusive area in Mazatlan.

Walfre Real Estate is the most respected real estate service in Mazatlan with over 30 years of experience serving Americans and Canadians.  Professional services include: sales and leasing, legal and fiscal consulting, property management and rental referrals, translations and interpreter assistance.

El Cid and Walfre, the two most recognized names for Mazatlan’s luxury real estate, have come together to share Mazatlan with North America. There is no better time to experience Mazatlan.