Market entry consulting refers to a professional service provided by a consulting firm to help clients analyze the opportunities and risks of the target market and formulate appropriate market entry strategies and programs. Market entry consulting can help clients expand their business scope, improve competitiveness, and increase revenue and profits. However, there are also some common pitfalls in market entry consulting. If you do not pay attention to avoiding them, it may bring unnecessary losses and risks to customers. This article will analyze the four traps of market entry consulting from the perspective of consulting companies, namely: insufficient market research, unreasonable market entry strategy, unfeasible market entry plan, and inadequate market entry implementation. Combined with the specific cases of Shangpu consulting service customers, some warnings and suggestions are given.

Market entry consulting refers to a professional service provided by a consulting firm to help clients analyze the opportunities and risks of the target market and formulate appropriate market entry strategies and programs. Market entry consulting can help clients expand their business scope, improve competitiveness, and increase revenue and profits. However, there are also some common pitfalls in market entry consulting. If you do not pay attention to avoiding them, it may bring unnecessary losses and risks to customers. This article will analyze the four traps of market entry consulting from the perspective of consulting companies, and give some warnings and suggestions based on the specific cases of Champ Consulting Service customers.

The first big trap: insufficient market research

Market research is the basis and premise of market entry consultation and an important means to provide effective decision support for customers. Market research should be comprehensive, in-depth and accurate understanding of the target market environment, scale, structure, demand, competition, trends and other aspects of information, and its effective analysis and evaluation. However, in practice, many consulting firms may ignore or cut corners to conduct market research, leading to the following problems:

Market research data from unreliable or outdated sources. In order to save cost or time, some consulting companies may use some public or second-hand data sources instead of conducting field trips or raw data collection. This can lead to poor data quality that does not reflect the true situation in the target market.

Market research methods are not scientific or applicable. In order to simplify the process or apply templates, some consulting firms may use unscientific or inapplicable market research methods, such as over-reliance on questionnaires or web searches without conducting in-depth interviews or observations. This may lead to incomplete data collection and failure to capture the core issues in the target market.

Inadequate or non-objective analysis of market research results. Some consulting firms may conduct inadequate or non-objective analysis of market research results in order to cater to their clients or their own interests, such as ignoring or glorifying market risks, exaggerating or fictitious market opportunities, without rigorous logical reasoning or data validation. This may lead to data interpretation distortion, unable to provide customers with effective decision support.

The consequences of inadequate market research are serious and may lead to the wrong perception and judgment of the target market, thus affecting the formulation and implementation of market entry strategies and programs. For example, Champ Consulting once provided China market entry consulting services for a European auto parts manufacturer. The customer originally intended to establish a production base in China to reduce costs and increase market share. However, after in-depth market research conducted by Champ Consulting, the following problems were found:

China's auto parts market is highly saturated and competitive, and customers' products have no obvious advantages or differentiation, and it is difficult to obtain market recognition and acceptance.

China's auto parts market is facing changes and challenges in policy, technology, and environment. Customers' products may not be able to adapt to market needs and standards, and it is difficult to obtain market access and maintain.

China's auto parts market has a complex channel and supply chain system, customers lack of localized partners and resources, it is difficult to obtain market distribution and services.

Based on the above findings, Shangpu Consulting recommends that the client abandon the plan to establish a production base in China, but instead to find partners or acquisition targets in China to use its existing resources and advantages to improve the efficiency and effectiveness of market entry. The client adopted the recommendations of Champ Consulting and eventually succeeded in achieving market entry in China.

The second biggest trap: market entry strategy is unreasonable

Market entry strategy refers to the overall plan and guidance developed by the consulting firm for the client on how to enter the target market. Market entry strategy should be based on a full understanding and analysis of the target market, combined with the customer's own resources and capabilities, to develop the best choice in line with the customer's goals and expectations. However, in practice, many consulting firms may develop unreasonable market entry strategies, leading to the following problems:

Market entry strategies are too idealistic or conservative. In order to attract customers or avoid risks, some consulting companies may formulate too idealized or conservative market entry strategies, such as too high or too low to estimate market potential and competitive pressure, too fast or too slow to set market entry Speed and scale, too much or too little investment in market entry resources and costs, etc. This may lead to unrealistic expectations or concerns about the target market, which may affect the determination and confidence of market entry.

Market entry strategies lack specificity or flexibility. In order to simplify work or apply experience, some consulting companies may formulate market entry strategies that lack pertinence or flexibility, such as ignoring or vaguely defining target market segments and target customer groups, ignoring or solidifying market entry modes and paths, and ignoring or neglecting to respond to market changes and competitive dynamics. This may lead to the customer's lack of effective positioning and adaptation to the target market, thus affecting the efficiency and effectiveness of market entry.

The market entry strategy does not match or coordinate with the customer itself. In order to satisfy the client or self-expression, some consulting firms may develop market entry strategies that do not match or coordinate with the client itself, such as exceeding or falling below the client's resources and capabilities, inconsistent with the client's vision and values, and incompatible with the client's other business and strategies. This may lead to various difficulties and conflicts encountered by customers in the process of market entry, thus affecting the continuity and stability of market entry.

The consequences of unreasonable market entry strategies are serious and may cause customers to lose competitive advantages and development opportunities in the target market, and even suffer significant losses and risks. For example, Champ Consulting once provided Indian market entry consulting services for a US-based e-commerce platform. The customer had intended to replicate its successful model in the United States in India, with a view to establishing an Amazon-like e-commerce giant in India. However, after in-depth market research conducted by Champ Consulting, the following problems were found:

The Indian e-commerce market already has strong local competitors suchFlipkart、SnapdealThe customer's product has no obvious advantage or differentiation, and it is difficult to gain market share and loyalty.

There are complex legal, tax, logistics, payment and other obstacles and challenges in the Indian e-commerce market. Customers' products may not be able to adapt to the rules and standards of the market, and it is difficult to obtain market access and maintain.

There are diverse cultural, language, habits, preferences and other differences and needs in the Indian e-commerce market. Customers' products may not be able to meet the diversification and personalization of the market, and it is difficult to obtain market recognition and acceptance.

Based on the above findings, Champ Consulting recommends that the client abandon the plan to replicate its successful model in the United States in India, and instead find partners or investment targets in India to use its existing resources and advantages to improve the efficiency and effectiveness of market entry. The client took Champ's advice and eventually succeeded in achieving market entry in India.

The third major trap: market entry scheme is not feasible

The market entry plan refers to the specific steps and measures developed by the consulting firm for the client on how to implement the market entry strategy. The market entry plan should be based on a full understanding and support of the market entry strategy, combined with the customer's own actual situation and capabilities, to develop a feasible market entry plan and budget. However, in practice, many consulting firms may develop unfeasible market entry scenarios, leading to the following problems:

Market entry schemes are too complex or simple. Some consulting firms may develop overly complex or simple market entry programs in order to show professionalism or ease of trouble, such as setting too much or too little market entry goals and targets, too much or too little scheduling of market entry activities and tasks, and too much or too little allocation of market entry resources and personnel. This may cause customers to encounter all kinds of confusion and trouble in the process of market entry, thus affecting the smooth and successful market entry.

Market entry programs lack operability or measurability. In order to avoid liability or preserve space, some consulting firms may develop market entry programs that lack operability or measurability, such as the use of vague or abstract language and concepts, no clear or specific operational guidelines and processes, and no clear or specific assessment methods and standards. This may lead to the lack of effective guidance and supervision of customers in the implementation of market entry, thus affecting the quality and effectiveness of market entry.

The market entry plan does not match or coordinate with the customer itself. In order to satisfy the client or self-expression, some consulting firms may develop market entry programs that do not match or coordinate with the client itself, such as beyond or below the client's ability and level range, inconsistent with the client's organizational structure and culture, and incompatible with the client's other businesses and projects. This may lead to various difficulties and conflicts encountered by customers in the implementation of market entry, thus affecting the continuity and stability of market entry.

The consequences of unfeasible market entry solutions are serious and may prevent customers from effectively implementing market entry strategies in the target market, or even suffer significant losses and risks. For example, Champ Consulting once provided Brazilian market entry consulting services for a Japanese cosmetics brand. The customer originally intended to promote its line of skin care products, which was very popular in Japan, in Brazil in the hope of establishing a loyal consumer base in Brazil. However, after in-depth market research conducted by Champ Consulting, the following problems were found:

The Brazilian cosmetics market already has strong international competitors, such as L'Oreal, Estee Lauder, etc. The products of customers have no obvious advantages or differentiation, and it is difficult to obtain market share and loyalty.

There are complex legal, tax, quality, safety and other obstacles and challenges in the Brazilian cosmetics market. Customers' products may not be able to adapt to the rules and standards of the market, and it is difficult to obtain market access and maintain.

There are differences and needs in the Brazilian cosmetics market in terms of skin color, climate, habits, preferences, etc. Customers' products may not be able to meet the diversification and personalization of the market, and it is difficult to obtain market recognition and acceptance.

Based on the above findings, Champ Consulting recommends that the client abandon the plan to promote its skin care product line, which is very popular in Japan, in Brazil, and instead switch to developing and launching a new product line in Brazil that meets the characteristics and needs of the local market, so as to utilize its expertise and technology in the cosmetics field and improve the efficiency and effectiveness of market entry. The client adopted the recommendations of Champ Consulting and eventually succeeded in achieving market entry in Brazil.

The fourth trap: market entry implementation is not in place

Market entry execution refers to the specific support and services provided by the consulting firm to the client on how to implement the market entry program. Market entry implementation should be based on the full understanding and support of the market entry program, combined with the customer's own actual situation and capabilities, to provide effective market entry management and coordination. However, in practice, many consulting firms may provide inadequate market entry execution, leading to the following problems:

Market entry execution is too passive or active. Some consulting firms may provide overly passive or proactive market entry execution in order to avoid liability or gain benefits, such as over-reliance on or interference with clients' decisions and actions, over-passive or active participation in market entry activities and tasks, and over-conservative or risky responses to market changes and competitive dynamics. This may lead to a lack of effective support and services for customers in the execution of market entry, thus affecting the smooth and successful market entry.

Lack of communication or collaboration in market entry execution. In order to save costs or keep confidential information, some consulting firms may provide market entry implementation that lacks communication or collaboration, such as lack or delay in reporting market entry conditions and results to customers, lack or refusal to communicate market entry issues and suggestions with customers, and lack or disrupt collaboration with customers on market entry activities and tasks. This may result in a lack of effective information and feedback from customers in the execution of market entry, which may affect the quality and effectiveness of market entry.

Market entry execution is not matched or coordinated with the customer itself. In order to satisfy the client or self-expression, some consulting firms may provide market entry execution that does not match or coordinate with the client itself, such as exceeding or falling below the client's expectations and satisfaction range, inconsistent with the client's organizational structure and culture, and incompatible with the client's other business and projects. This may lead to various difficulties and conflicts encountered by customers in the implementation of market entry, thus affecting the continuity and stability of market entry.

The consequences of inadequate market entry implementation are serious and may prevent customers from effectively implementing market entry solutions in the target market, or even suffering significant losses and risks. For example, Champ Consulting once provided South African market entry consulting services for a German medical device company. The customer originally intended to promote its very advanced artificial joint products in Germany in South Africa, with a view to establishing a high-end medical device market in South Africa. However, after in-depth market research conducted by Champ Consulting, the following problems were found:

The South African medical device market already has strong international competitors, such as Johnson & Johnson, Medtronic, etc. The products of customers have no obvious advantages or differentiation, and it is difficult to obtain market share and loyalty.

There are complex legal, tax, quality, safety and other obstacles and challenges in the South African medical device market. Customers' products may not be able to adapt to the rules and standards of the market, and it is difficult to obtain market access and maintain.

The South African medical device market has diversified economic, social, and cultural differences and needs. Customers' products may not be able to meet the diversification and individualization of the market, and it is difficult to obtain market recognition and acceptance.

Based on the above findings, Champ Consulting recommends that the customer abandon the plan to promote its very advanced artificial joint products in Germany in South Africa, and instead switch to developing and launching a new product series in South Africa that meets the characteristics and needs of the local market to use its medical equipment. The field's expertise and technology improve the efficiency and effectiveness of market entry. The client took Champ's advice and eventually succeeded in achieving market entry in South Africa.

Conclusion

Market entry consulting is a professional and complex service that requires full trust and cooperation between the consulting company and the client to ensure the success and effectiveness of market entry. Market entry consultation involves four key links, such as market research, market entry strategy, market entry plan and market entry implementation. There are some common traps in each link. If you do not pay attention to avoid them, it may bring unnecessary losses and risks to customers. From the perspective of consulting companies, this paper analyzes the four traps of market entry consulting, and gives some warnings and suggestions in the light of the specific cases of Shangpu consulting service customers. It is hoped that this paper will be helpful and enlightening to consulting firms and clients in conducting market entry consultations.