Find new markets

Exports, imports and trade deficit has been a critical issue in our national economic history. While we have been having severe energy crisis, non-availability or high cost raw materials, the shortage of a trained workforce and the critical law and order situation with the war on terror on the ground has badly affected our exports in the traditional markets. It is time to find new markets for Pakistani products.
Finding new markets is much more important than to continue selling the product to traditional markets like some of the European countries and the US. For this, the continued modification in products is required so that existing customers buy these products regularly. New customers will take time to switch from your product to any other, if the quality is good. It is also helpful to replace your existing customers who have left because of a lack of need, low buying power or who have switched to the competitors.
"Finding a new market" means finding a set of new customers who have not purchased your products from you before. This means that a new market could be customers in a different place, socio-economic group or industry. A new market can also be found if you introduce multi-dimensional use of your product. The size of the country, number of opportunities and sheer geographical size often leaves a company wondering where to start.
Finding new markets is essential to be successful in businesses. It helps to ensure increasing sales at a reasonable profit margin. Increasing sales in the new market is one of the easiest ways to grow your business. It provides a wide playground without much competition. The key to successfully increasing sales in a new market is to know the customers' buying histories, both generally and individually.
The goal, of course, is to get your new customers to buy your products, which is new in the market but with a long historical background in the other market where you are already selling. The data about what customers buy, when and how often will help you make savvy decisions about stocking and marketing in the new market.
There are varieties of ways to enter a new market including: Indirect entry: Indirect entry means to do the business in the new foreign market through an agent or distributor. Agents make contacts and market the product in the particular market on a commission basis. Agents usually represent more than one organisation which are low-cost, but low-control option. They work to achieve targets given by the product owners to show the level of their commitment. Agents might also be representatives of competitors, so beware of conflicts of interest.
There is a main difference in Distributors that they take ownership of the goods. Therefore they have an incentive to market products and to make a profit from them. Otherwise, the pros and cons are similar to those of international agents.
Direct entry: Direct entry means marketing, exporting and direct sale of domestic produced goods in a foreign country. It is a traditional and well-established method of reaching foreign markets. In this method, it is not required that the goods be manufactured in the target market, no investment is also required. Direct entry strategy also gives an opportunity to learn about the foreign market before investing in bricks and mortar.
Co-operative strategies: Co-operative strategies means making licensing agreements, joint ventures, and strategic alliances to gain market presence or enter a new foreign market. If a company is interested in going beyond the simple export of goods and services, licensing, joint ventures should be explored.
While direct exporting may be a profitable method of market entry for some businesses, licensing manufacturing rights to your product to a foreign company or setting up a foreign manufacturing joint venture may be viable alternatives. Strategic alliance partners are often identified through bankers, accountants, business consultants, industry associations and networks, and government contacts.
Licensing is a method of foreign operation, whereby a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how or some other skills provided by the licensor. It is just like a franchise operation. Licensing involves little expense and involvement of signing the agreement and policing its implementation.
Joint Venture is a market entry option, which the exporter and a domestic company in the target country join together to form a new incorporated company. Both parties provide equity and resources to the joint venture and share in the management, profits and losses. The joint venture be limited to the life of a particular project. This option is popular in countries where there are restrictions on foreign ownership.
Direct investment or Foreign Direct Investment (FDI) establishment: Direct investment means to establish a retail location, manufacturing facility or sales point in the new market. This is expensive, but allows the business to organise operations the way it wants and use its own people to run the business.
Direct investment in a foreign market provides a company with new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing.
Regardless of focusing on conventional regions like some of the European countries and the US etc, Pakistan has to explore new markets. We have big market for our products in the Far-East, the East Asian countries, Australasia, Uruguay, Chile and many African Countries etc.
Market reports and trade offices' feedback about the countries, their markets, business practices and customers' behaviour and buying power can be a useful source of information to enter a foreign market. The concerned government ministries, departments, trade bodies and our commercial counsellors can play a vital role to provide this information and facilitate to exporters in entering a new market, which would be helpful in boosting the economic situation.