Devising a USA Go-to-Market Strategy
It’s way more complex than many overseas companies think.
It’s all the rage! Asian Pacific and Eastern European fine and specialty chemical manufacturers are sizing up the USA, deciding how to launch their products and services into a new marketplace. A direct consequence of the China+1 sourcing initiative, these emerging suppliers are anxious to get started.
American customers have vetted domestic and international vendors before, with mixed experiences, leading to their China+1 pivot. As asked in a previous blog post: where is this +1? India? Japan? Vietnam? Malaysia? Hungary? Czech Republic? Companies may certainly be suited to launch products and services, but the challenge is…how to penetrate the American market?
Ah, there’s the rub. America, the USA in particular, is an undiscovered country, with all sorts of logistics, cultural, and segment-specific challenges. Do overseas companies truly understand our requirements? Having encountered this regularly, my answer is NO, and here’s why:
Awareness - No one knows who these companies are. Are you a sophisticated manufacturing operation, or some folks stirring a paddle in a garage? Reputation in your local market will not influence buying behavior here.
Commitment - How often is your e-mail inbox filled with offers from companies you’ve never heard of, offering products with unknown quality, at aggressive hard-to-believe pricing? Remote selling isn’t a commitment to entering a new market.
Support - What is their idea of local representation? An agent to snag opportunistic sales?
Risk - Can new vendors endure the qualification protocols of US companies? Can a buy decision simply be made on price or specification? As the market niche tightens, and the value of the product increases, so does the complexity of the approval process. Are these suppliers prepared to accept failure?
Here’s my roadmap for a successful US market entry:
Discovery - Perform due diligence on the market, your target customers, and competitors to assess viability. Which of your products and services are most relevant? Avoid the kitchen sink approach of endless line cards. Conversely, don’t present yourself as something you’re not. FOCUS. Research online, but then attend industry events, trade shows, and talk to people. Can’t do this on your own? Hire a consultant well-versed in the industry sector you intend to enter. Pay a monthly retainer to deliver invaluable, concise discovery data, not thick reports full of useless information.
Marketing - Promote your company, particularly on social media, where word travels fast. Hire professionals to give your website a contemporary look and feel, with helpful content for self-learners. Want your company’s name and keywords to move up in searches? Invest in modern digital marketing programs.
Pipeline - As prospects are engaged via cold-calling, networking and lead generation, vet these opportunities and build a project pipeline with revenue and time horizons. This will validate your go-to-market decision, or convince you to withdraw.
Sales - Begin selling, shipping, and following up. Be excellent. Dote on your new customers. Win repeat business. As new product and service opportunities are identified, respond swiftly, don’t delay.
Expansion - Consider fractional employment to establish a more robust local sales and service operation. Establish a legal entity and hire your first employee(s). Seek out sales channel partners to inventory product locally. Collaborate with peer companies offering complementary products and services.
Rinse and repeat - Close the loop with continuous monitoring and measurement of results to judge performance and identify areas for improvement. Prove to the US marketplace that you are a reliable vendor deserving of a greater share of sales.
In other words, don’t skimp, don’t cut corners. Expecting an agent with a trivial commission to develop your business is pure folly. Want to learn more about how to engage with the right consultant or fractional executive on go-to-market strategies? Reach out for a free initial consultation today.