How would you internationalize a US based product?

How is the competition doing good: Is it Low prices, higher ad spends and/ or better quality ? – It is Lower prices at acceptable quality (lower than us), higher accessibility (online, retail)

Any thing else: Our company has been the leader in hearing aids, strong brand recall, have a strong network of agents, we have a superior product quality

Who are the users in US: Medium to High earning consumers focussed on quality

About company:

Strength:

+ Strong brand in US

+ good distribution network for hearing aid centers in US

+ experience/ relationships with network

+ Superior product quality

Areas of improvement:

- Growth rate has been low in the last 2 years

- Parallel brands have come up doing the same, and growing much faster

- Higher pricing

- Less perceived as a differentiated product

Strategies

Evaluation criteria: #revenue, effort/ complexity, strategic fitness

1. Expand internationally with the existing network (with intl presence) – Low revenue as US network may have limited reach internationally, Less complexity, Strong fitment

2. Go all by yourself building a network from scratch - Low revenue initially, High complexity, Strong fitment

3. Tie up with local complimentary networks for distribution such as diagnostic centers, Theater chain, hospitals, etc – Medium revenue, medium complexity, High strategic fitment

4. Cobrand with complimentary products/ brands – diagnostic centers, hospital chains, spectacle retailers – High revenue, Medium complexity, Medium

5. Supply product with distributors brand name – High, medium, Low

Recommendation:

Cobrand with complimentary products/ brands – hospital chains, clinics, diagnostic centers, spectacle retailers – High revenue, Medium complexity, High

This may be a good starting strategy where the US brand can harness the credibility and trust of local brands to build it own brand over time. In the medium run this will also drive revenue.

The company may have to evaluate brands they want to associate with, by not engaging with brands with a maligned reputation.

Amit J · Answer 2 · 2022-02-04T18:14:37+0000

How would you internationalize a US based product?

Clarifying question:

1) Are we planning to expand the product into particulear region like EMEA, ASMO, APJ or country - lets say Region - pick APJ

2) is the product - Physical or software ? - Doesnt matter - think of any product - Lets assume Organic Milk in India

3) Is the current product being successful in US - lets assme Successful

4) is current product reached saturation in US? - Assume yes

5) What is the goal? - increasing revenue, increasing user base, increasing profits?

5) Am i going to produce locally in that contry using the same brand - lets go with it

In order to Internationalize the product, below is the framework that i would use:

Market Size - Organic milk market?

how is it growing over next 5-10 years?

is this Business profitable?

Customers - Who are my customers?

Organic milk comes at a premium cost that normal regular milk, lets assume 100% premium. My customers would be those family who can convert from normal milk to organic milk or current organic milk drinker.

Competition - I would like to understand how competition of organic milk look like.

- What is the quality of organic milk in competition?

- What is the quality of even non-organic milk?

- What market share i can grab?

- What is the cost structure of competition?

- How competition will behave with this ne wproduct entering into market?

Cost - I would like to understand my cost of producing the milk?

do i produce locally since its a perishable item or can i even import it from US?

if i need to produce locally, do i need to make any acquisitions, or partners with other company or start on my own?

I need to understand the CapEx and OpEx for the same?

How should i priced the item against competition?

Channel: I would also like to study the way i will channelize the product, Marketing efforts that i need to put, any promotions, do i sell anything similar with existing brand to leverage that.

Capacity : What is the market share up for grab? how much capacity do i need on yearly basis? do i need to setup plants and take necessary government approvals? should i lease or buy the property? what is the expansion plan for next 5 years?

Ghgj · Answer 3 · 2022-01-24T03:01:22+0000

Questions:

- Is this any product or are we talking about a specific product type or product category?

- By internationalize, do we mean enter one specific market or set of markets? Which one (e.g. Europe, South east Asia, South American)

- Why are we internationalizing this product? Do we have a specific goal in mind (e.g. increase revenues, increase user base, increase profit)?

At this point we need to consider:

Market

- What are the dynamics in this new market, in terms of regulations

- Who are the competitors and how strong they are

Customers

- Is the product responding to the same user need / saving the same problem in that market?

- Would it be address to the same demographic? Is the lifestyle of the users and their willingness to pay different?

- How is the customer journey different?

- What language is spoken there?

Company Fit

- What is the company reputation in this area

- Is the company known

Based on these factors we would know:

- Marketing effort

- Legal effort

- Product adaptation effort