Analysing a new market prior to expansion

An accurate analysis is the key to a successful expansion

Without a well-executed analysis of a new market, expecting successful outcomes from foreign expansion efforts is unrealistic. Understanding the strengths, weaknesses, characteristics, threats, and opportunities of a given market is crucial. This knowledge is vital for aligning them with one’s own capacities and the potential advantages from marketing activities. Systematising and breaking down the research process of a new market and evaluating its suitability for expansion is valuable.At Get Noticed Agency, we streamline this process through a meticulous analysis conducted across seven key stages:

In-house data

This data gathered from our executed campaigns and our team’s analysis. The data was primarily gathered during expansion-focused activities for our clients, it originates from e-commerce industry reports, international business conferences, and specialised tools. The collected information encompasses user profiles in distinct regions, transaction details within specific markets, and advertising campaign metrics targeting foreign expansion in specific economic zones.

Demographics

Details regarding a country’s population, encompassing basic statistics such as the population count, number of Internet users, and spoken languages. Moreover, this data collection involves gathering insights into the behaviour and consumer characteristics within distinct age groups.

Trends and statistics

Data pertaining to the characteristics of a specific market is gathered in this context. This includes details such as commonly used price comparison platforms, marketplaces, and online stores, as well as prevalent search engines and operating systems. Additionally, we analyse market trends, the demand for specific product categories, and various factors related to online portals and social media platforms.

The example dataset is available from Datareportal.

Economic data

We collect information on the economic conditions within a particular market, including the most widely used payment methods, taxation policies, and legal considerations. Furthermore, our data compilation involves tracking news related to the average purchase values and global e-commerce metrics for the relevant country. This includes insights into the industry’s valuation, commonly preferred delivery methods, and the determinants influencing purchase decisions. Recognising the economic capability of a society is pivotal when making decisions about expanding operations internationally.

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Information about the competition

An essential part of our analysis involves gathering data on the competition that our client’s company faces in the target market. This encompasses evaluating the brand’s popularity, the effectiveness of its marketing strategies, and the innovativeness or alignment of its products with current trends. Our competitor analysis serves as a benchmark for evaluating our client’s brand potential. This approach enables us to determine whether the competitive environment poses a substantial obstacle, making entry into a particular market not worthwhile, or if it presents opportunities for further brand development.

Most popular brands in a given market

In addition to evaluating competitors, it is beneficial to examine the strategies employed by companies that have gained popularity among local consumers in a specific market. Analysing the practices of market leaders provides valuable insights into prevailing trends, consumer purchasing habits, and effective promotional methods that successfully engage the audience.

Product categories

Prior to venturing into international markets, it is crucial to analyse whether our product would be attractive to consumers in the targeted market. Selling a product in a market already saturated, lacking desirability, or having low product awareness can pose challenges. During this stage, emphasis is also placed on assessing the demand for relevant product categories, which is a pivotal factor in the analysis of foreign markets.

What exactly should I pay special attention to?

The type of information that is most relevant to a particular business may vary case by case. However, certain metrics are worth taking into account regardless of the business’s specifics and the target market. These may include:

• preferred delivery methods,
• the best marketplaces,
• most frequently selected product categories,
• the engagement of users who purchase from foreign shops,
• the engagement of users who buy online,
• GDP values,
• the user engagement across the various social media channels,
• payment methods and gateways.

Where to find information regarding a foreign market?

Conducting a thorough market analysis before expanding abroad is essential. Now that we understand the valuable data for analysis, let’s explore where to obtain the necessary information. At Get Noticed Agency, a substantial portion of our market insights comes from the analysis and observations deriving from our operational activities. Our extensive experience in running campaigns for clients in foreign markets has greatly expanded our knowledge base, involving detailed analyses of nearly 20 foreign markets. However, not everyone may have access to such advanced databases. What options are available in a given scenario?

Reports and studies conducted by local and state institutions, which are publicly accessible, and can serve as valuable support. In Poland, such materials can be obtained from entities, such as: the Polish Chamber of Electronic Economy, local e-commerce chambers, as well as local and national chambers of industry and commerce. Additionally, governmental websites like trade.gov.pl offer forecasts and statistics regarding foreign markets. It’s noteworthy that equivalent institutions are typically present in foreign countries as well. When seeking to gather information about the local market, it’s advisable to explore their websites. Additionally, valuable insights can be derived from research conducted by portals monitoring the e-commerce industry, consulting or auditing firms, and brands offering payment services or other services associated with the e-commerce sector. Notable sources include; Statista, Postnord, Ecommerce-Europe, The Paypers, Data Reportal, tPay, and the ‘Big Four’ companies – PwC, Deloitte, EY, KPMG.

Example report from Statista.com on the Romanian market

Take advantage of the marketing tools' potential!

While market reports are valuable, they aren’t the only source for obtaining data on a specific market. Marketing tools can serve as valuable support, particularly helpful in identifying trends in a given market and evaluating a company’s advertising potential alongside its competitors’ marketing capabilities. Hence, supplementing the entire analysis process with information derived from marketing tools remains worthwhile.

A key tool in this regard is Google Market Finder, which evaluates your website and proposes the most suitable markets for your business. On the Market Finder website, you’ll find a list of agencies recommended by Google to cooperate with when expanding internationally. These agencies use specialised tools dedicated to foreign expansion activities, offering capabilities beyond what’s available to others. Engaging with such an agency allows for a more precise identification of the relevant foreign market and the implementation of tailored and effective advertising strategies. Get Noticed Agency is one of ten such agencies, and the case study featuring S’portofino serves as confirmation regarding
effective collaboration in foreign markets.

Przykład danych z Market Finder

Another valuable tool is the widely used Keyword Planner, enabling the tracking of interest in specific keywords over a defined time frame. This becomes particularly useful when assessing whether it is worthwhile to advertise a product in a specific market. The tool provides insights into various metrics, including the range of top and bottom display rates for an ad at the top of the page. An additional complement to the Keyword Planner is Google Trends, which offers predictions for specific keywords in terms of search volume. For a more in-depth understanding of the Keyword Planner, refer to Get Noticed Agency’s blog post titled “What is a keyword planner?“.

Further valuable insights for foreign market analysis can be obtained from tools widely used by SEO specialists. One notable tool is ahrefs, which allows scrutiny of the keywords being searched in a specific market and industry, as well as the generation of ideas for social media content. Additionally, ahrefs aids in target audience and competitor analysis. For competitive analysis, tools like SEMSTORM or Senuto could be beneficial in providing relevant data.

Make sure you carry out a thorough analysis of your potential competition!

Ensuring a successful launch into a new market requires considering the local competition. While insights from reports and data obtained through marketing tools provide a strong foundation for a business strategy in a new market, achieving remarkable results is challenging without the knowledge of competing companies.

So how should you go about analysing potential competition? Taking advantage of Google tools such as Google Ads and Google Trends to analyse potential competitors, is invaluable. These tools reveal the extent of advertising activity from other companies targeting keywords related to your offerings. Direct competitor analysis is equally crucial. Companies can be identified through Google searches and on Facebook, where exploring pages in a specific language and category, as well as examining the “Comparative analysis” tab on Facebook can reveal pages with similar services or products.

Competitor analysis holds significance not only for assessing a brand’s prospects in a new market but also for estimating advertising opportunities, including budget requirements and commitment to marketing activities. Drawing appropriate conclusions from this analysis helps in selecting valuable target audiences, keywords, and messages, enhancing the likelihood of making your offer stand out from the competition.

Summary

The natural progression for the growth of an online store often involves expanding abroad. Venturing beyond Poland not only offers an excellent opportunity to broaden business possibilities but also provides a chance to increase revenue. However, the success of foreign expansion relies heavily on a deep understanding of the new environment and a thorough analysis of prevailing trends, consumers, and competition. Acquiring this information empowers you to plan your strategy with confidence, leveraging the strengths of your offerings and monetising on favourable market factors.

The insights gathered about a specific market can be effectively utilised, among other things, for advertising campaigns—a powerful means to attract new customers and scale sales in e-commerce. At Get Noticed Agency, we assist our clients in achieving their goals, especially when expanding into foreign markets, using the advertising systems from Google and Meta.

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