The American market has been the most attractive and lucrative business destination for worldwide companies. Consumers from different economic backgrounds in the US provide the best opportunity for all the businesses be it small or large enterprises. But before entering, there are necessary actions which you should follow, as the market scenario can change due to various circumstances. This if not appropriately analyzed, can hamper the penetration process. The PESTLE analysis is a must-approach before entering any international market, and the same goes with the businesses planning for entering the American market. The markets here fluctuate based on the political, economic, social, technological, legal and environmental factors.
Let’s see the detailed explanation and other factors which can affect the market penetration in the US market:
1. Unique Service:
The US market is a battle-ground for many companies across the world trying to outsmart each other for winning over more of the customers. The latest services or products customized as per the consumer’s requirements are readily available for the usage, and with more disposable income and high purchasing power consumers can buy the products of their choice imported from different countries. In such a scenario a new company entering into this market has to be little unique in their offered services for standing out and making their mark as an invaluable choice among the consumers.
2. Mutual Profits:
Many times it becomes difficult to handle a new market alone as there are many competitors already grappling for the same consumers. In such circumstances, if you are entering the market with almost no experience, it might not deliver fruitful results. Partnering with companies already established there and providing similar services can lead to profit generation for being shared between you and your strategic partner. Small businesses can connect with other business professionals of leading organizations for the partnership and learn from their experiences. The current experiences can help in making future decisions for maintaining the stronghold in the market.
3. Aggressive Promotion:
Advertising has always been a great approach for increasing brand visibility among new customers. While entering a new market especially the US market where consumers are exposed to much advertising, it’s advisable to promote your product aggressively to the targeted customers. This will not only attract potential customers but also spread awareness among the general public about your quality product.
4. Customizing as per the US Consumers:
It has been seen many times that the product which works well in a specific country might not work well in another country. There can be reasons which are like the taste of the consumers differs country-wise, the social factors, climatic conditions, etc. So, while entering the market, we should also look into these factors on a priority basis. For, example peanut snacks are very popular in Israel and almost no one is allergic to peanuts, but in the US almost 1.8 million kids are known to be allergic to any food item with peanut as the ingredient.
So, if you are planning to introduce this product in this market then instead of peanuts other nuts like almonds popular among the health-conscious US consumers can be used as the major ingredient and released into the market.
5. Meeting the US Standards:
The US is one of the highly developed nations of the world. So, the introduction of any product into this market has to pass through the stringent quality check measures. Many of the products have been before banned entry, as it does not meet the regular US quality standards. Products like unpasteurized milk, shark fins are prohibited in the US. Ackee fruit which is the national Jamaican fruit is illegal in the US as its toxins release a high amount of glucose, drastically reducing the consumer’s blood sugar and proving fatal for him.
6. Adjustments in Price and Product:
To gain a strong market share, any new product has to be introduced at a reasonable price which can motivate the consumers for trying the product at least once, thus giving the required exposure to the product. Marketers and the decision makers of the companies have to lay out the plan for making the adjustments in the price so that at the initial phases of the introduction there could be minimal profits for the organization with also the consumers enjoying the benefits of the product.
The product to be introduced into this market has to meet the high packaging standards as it safeguards the product getting damaged by the environmental conditions and being exposed to the sunlight.
Any international market penetration, demands intense market research by the companies planning to penetrate the specific market. The action-oriented insights which you get from this research help in understanding the mindset of the targeted consumers. It further facilitates in providing different ways for approaching these customers. The right time for the introduction of the product can be planned based on that; you can introduce the modified version of the product as per the customer’s preferences, the layout of advertising strategies etc. can also be planned to lead the successful introduction of the product.