What is the right road to a new market?
A foreign startup recently came to Pariveda with something of a challenge on their hands. After a tremendous amount of success in their country of origin, they felt that the time was right to enter the U.S. market for the first time. The product they offered was a cloud-based point-of-sale system specifically configured with convenience stores in mind. The team at Pariveda was asked to perform an extensive market analysis with an eye toward identifying a proper target market segment, identifying the company’s and the product’s competitive advantage and identifying appropriate channels to leverage for entering the market.
The study would then be used to attract investors for the $150 million in required funding to enter the market in the strongest way possible.
Reveal your competitive advantage
Pariveda decided that it was best to use a top-down approach based on the "Business Model Canvas Framework," and was able to quickly identify and exclude several market segments that could not be penetrated. These included very large franchises like 7-Eleven, Couche Tard and more.
Pariveda was also able to identify specific target customer profiles in the convenience store space that would be an ideal fit for the client's solution. Additionally, we were able to uncover sources of competitive advantages by comparing the client's product against the incumbent competition including mega-companies and smaller niche players alike. Finally, Pariveda was able to assess opportunities for entry into the market by way of direct Salesforce penetration, through C-Store suppliers, through fuel pump manufacturers and more.
Clarity maximizes the probability of success
Given that the market was saturated, Pariveda was able to identify that the only promising market entry strategy is through a series of targeted channels. This new level of clarity helped the client in a number of ways, including by allowing them to prioritize their efforts into a step-by-step focused sequence of activities while maximizing the probability of success. They were also able to avoid spending both time and money to chase low-probability opportunities, giving them a chance to truly put their best foot forward as they entered the United States for the first time.