Market entry consulting is a professional service that provides companies with feasibility analysis, strategic planning and implementation recommendations for doing business in a new market, industry or region. The purpose of market entry consulting is to help companies open up a blue ocean to achieve growth and competitive advantage. However, how to evaluate the effect of market entry consultation? This article will discuss the effect evaluation method of market entry consultation from the following aspects:

Value Chain and Key Performance Indicators (KPIs) for Market Entry Consulting

Quantitative methods and tools for market entry consulting

Case analysis and experience summary of market entry consultation

Value Chain and Key Performance Indicators (KPIs) for Market Entry Consulting

The value chain of market entry consulting can be divided into the following four stages:

Market research: By collecting and analyzing primary or secondary data, we can understand the size, structure, demand, competition, trends, opportunities and risks of the target market and provide a basis for subsequent decision-making.

Strategy formulation: according to the results of market research, combined with the enterprise's own resources, capabilities, advantages and objectives, formulate appropriate market entry models (such as independent operation, joint ventures, mergers and acquisitions, franchising, etc.), product or service positioning (such as high-end, mid-end, low-end, etc.), channel selection (such as direct sales, distribution, e-commerce, etc.), price Strategies (such as high price, medium price, low price, etc.), promotion strategies (such as advertising, public relations, word-of-mouth, etc.), etc., etc., to form a complete market entry plan.

Implementation: according to the formulated market entry plan, carry out specific operation and management, including organizational structure, personnel recruitment, training, incentive, process design, system construction, risk control, etc., to ensure the smooth implementation of the market entry plan.

Effect evaluation: through regular or irregular collection and analysis of relevant data, the implementation of the market entry plan and the effect of the evaluation and feedback, timely detection of problems and improvement points, adjustment and optimization strategies and measures, improve the efficiency and effect of market entry.

At each stage, a number of key performance indicators (KPIs) need to be set to measure the inputs, outputs and outcomes of market entry consulting. The KPI should have the following characteristics:

Relevance: KPIs should be relevant to the objectives and strategies of market entry consulting and reflect the contribution of market entry consulting to business performance.

Measurability: KPIs should be able to be represented by data and collected and analyzed through effective methods and tools.

Comparability: KPIs should be able to compare between different time periods or different regions or different objects, and be able to reflect changes and differences in market entry consulting.

Operability: KPI should be able to guide the implementation and improvement of market entry consultation, and be able to influence the change of KPI by adjusting relevant factors.

According to different stages and purposes, the KPIs of market entry consulting can be divided into the following categories:

KPI in the market research phase: mainly reflects the quality and efficiency of market research, such as the reliability of data sources, the coverage of data collection, the accuracy of data analysis, the timeliness of data reporting, etc.

KPIs in the strategy formulation phase: mainly reflect the rationality and feasibility of market entry solutions, such as the basis for the selection of market entry models, the degree of differentiation in product or service positioning, the cost-effectiveness of channel selection, the competitiveness of pricing strategies, and the innovation of promotional strategies.

KPI in the implementation phase: mainly reflects the implementation and achievement of the market entry plan, such as market share, sales, profit margin, customer satisfaction, brand awareness, market share, etc.

KPI in the effect evaluation stage: mainly reflects the overall value and impact of market entry consulting, such as the contribution rate of market entry consulting to the performance of the enterprise, the degree to which market entry consulting improves the competitive advantage of the enterprise, and the degree to which market entry consulting improves the risk control of the enterprise.

Quantitative methods and tools for market entry consulting

In order to effectively set and measure the KPI of market entry consulting, some quantitative methods and tools are needed to improve the scientificity and objectivity of market entry consulting. Here are some commonly used quantification methods and tools:

SWOT analysis: SWOT analysis is a method of analyzing a company's own strengths (Strengths), weaknesses (Weaknesses), external opportunities (Opportunities) and threats (Threats), and is used to assess the company's competitive position and development potential in the target market, as well as to develop appropriate market entry strategies.

Porter's Five Forces Model: Porter's Five Forces Model is a method for analyzing the competitive structure and strength of an industry, which was proposed by Michael Porter, a professor at Harvard University in 1979. The Porter Five Forces model argues that there are five fundamental forces in an industry, namely, existing competitors (Rivalry), potential entrants (Entry), substitutes (Substitutes), suppliers (Suppliers), and buyers (Buyers), which together determine the profitability and attractiveness of the industry. Porter's five-force model can be represented by a pentagonal diagram, as shown in the following figure:

Value Chain Analysis: Value Chain Analysis is a method of analyzing the value created by an enterprise in the process of providing products or services, which was proposed by Professor Michael Porter of Harvard University in 1985. According to value chain analysis, an enterprise can divide its activities into two categories, namely, main activities (Primary Activities) and auxiliary activities (Support Activities). The main activities include internal logistics (Inbound Logistics), production (Operations), external logistics (Outbound Logistics), marketing and sales (Marketing & Sales) and after-sales service (Service). Support activities include procurement (Procurement), technology development (Technology Development), human resources management (Human Resource Management) and infrastructure (Infrastructure). The value chain analysis method can be represented by a graph, as shown in the following figure:

Financial Analysis: Financial Analysis is a method of analyzing the financial situation and operating results of an enterprise, including financial ratio analysis, cash flow analysis, return on investment analysis and so on. Financial analysis can help companies assess the feasibility, cost-effectiveness and risk-benefit of market entry plans, as well as set reasonable budgets and targets.

Other methods and tools: In addition to the methods and tools described above, there are other methods and tools that can be used for quantitative analysis of market entry consulting, such as market segmentation, positioning, targeting, Boston matrix, Ansoff matrix, PEST analysis, STP analysis, etc. These methods and tools can be selected and combined according to different situations and needs to achieve the best market entry consulting effect.

Case analysis and experience summary of market entry consultation

In order to better understand the effectiveness evaluation method of market entry consultation, the following will be analyzed and summarized through a specific case. The case is a market entry consulting service provided by Champ Consulting for a well-known domestic appliance manufacturer.

The home appliance manufacturer already has a high brand awareness and market share in the domestic market. The main products include air conditioners, refrigerators, washing machines, etc. In order to seek new growth points, the home appliance manufacturer decided to enter the smart home field and provide smart home solutions, including smart home appliances, smart security, smart lighting, smart control, etc. The appliance manufacturer commissioned Champu Consulting to provide market entry consulting services to help it analyze and develop appropriate market entry strategies and plans.

According to the value chain of market entry consulting, Champu Consulting provides the following four stages of services for the appliance manufacturer:

Market Research: By collecting and analyzing first-hand and second-hand data at home and abroad, Shangpu Consulting has conducted a comprehensive research on the smart home market, including market size, structure, demand, competition, trends, opportunities and risks. Shangpu Consulting found that although the smart home market has high growth potential and profit margins, there are also some challenges and obstacles, such as low user awareness, inconsistent product standards, high technical thresholds, and many potential safety hazards. Shangpu Consulting submitted the results of market research to the home appliance manufacturer in the form of a report, and set some KPIs for the market research stage, such as the reliability of data sources, the coverage of data collection, the accuracy of data analysis, and the timeliness of data reports.

Strategy formulation: According to the results of market research, Shangpu Consulting has formulated appropriate market entry strategies and plans for the home appliance manufacturer in combination with its own resources, capabilities, advantages and goals. Champ Consulting recommends that the appliance manufacturer adopt an independent market entry model to avoid conflicts of interest or technology leakage with other partners. Champu Consulting recommends that the home appliance manufacturer provide personalized customized smart home solutions with high-end positioning to meet the needs and preferences of high-end users.

Shangpu Consulting recommends that the home appliance manufacturer choose direct sales channels and sell smart home products and services through its own specialty stores or websites to ensure brand image and service quality. Champu Consulting recommends that the appliance manufacturer adopt a high-price strategy to reflect its value by providing high quality and high value-added products and services. Shangpu Consulting recommends that the home appliance manufacturer adopt innovative promotion strategies to increase user awareness and interest through online and offline activities, experience centers, and word-of-mouth marketing. Shangpu Consulting submitted the market entry strategy and plan to the home appliance manufacturer in the form of a report, and set some KPIs for the strategy formulation stage, such as the selection basis of market entry mode, the degree of differentiation of product or service positioning, the cost-effectiveness of channel selection, the competitiveness of price strategy, and the innovation of promotion strategy.

Implementation: In accordance with the formulated market entry strategy and plan, the home appliance manufacturer has carried out specific operations and management, including organizational structure, personnel recruitment, training, incentives, process design, system construction, risk control, etc. Champ Consulting provided guidance and support to the appliance manufacturer during the implementation phase, including assisting in the development of implementation plans, providing professional training, coordinating relevant resources, monitoring implementation progress, and resolving implementation issues. Shangpu Consulting has set a number of KPIs for the implementation phase, such as market share, sales, profit margin, customer satisfaction, brand awareness, market share, etc., to measure the implementation and achievement of the market entry plan.

Effect evaluation: Through regular or irregular collection and analysis of relevant data, Shangpu Consulting has evaluated and fed back the implementation and achievement of the market entry plan, found problems and improvement points in time, adjusted and optimized strategies and measures, and improved market entry efficiency and effect. Shangpu Consulting has set some KPIs for the effect evaluation stage, such as the contribution rate of market entry consulting to the performance of the enterprise, the degree to which market entry consulting improves the competitive advantage of the enterprise, and the degree to which market entry consulting improves the risk control of the enterprise, etc., to reflect the overall value and impact of market entry consulting.

Through the professional services of Champu Consulting, the appliance manufacturer has successfully entered the smart home field, achieving performance growth and competitive advantages. The appliance manufacturer expressed a high degree of satisfaction and recognition with the services of Champ Consulting, and expressed its willingness to continue to maintain a cooperative relationship with Champ Consulting.

Conclusion

Market entry consulting is a professional service that provides enterprises with feasibility analysis, strategic planning and implementation suggestions in new markets or new business areas. The effectiveness evaluation of market entry consulting is a method of reflecting the input, output and results of market entry consulting by setting and measuring relevant key performance indicators (KPIs). The evaluation of the effect of market entry consultation needs to use some quantitative methods and tools, such as SWOT analysis, Porter's five-force model, value chain analysis, financial analysis, etc., to improve the scientific and objective nature of market entry consultation. The evaluation of the effectiveness of market entry consulting also needs to verify and optimize the methods and tools of market entry consulting through specific case studies and lessons learned. The effect evaluation of market entry consultation is a continuous process, which needs to be adjusted and improved according to different situations and needs to achieve the best market entry consultation effect.