All Articles Tagged "new market"
Serena Williams made her rap debut in a 60-second clip released by TMZ last week. The sample is a product of recording sessions the tennis champion participated in last year at a family friend’s studio. Williams has yet to comment on the leaked clip. So, there’s a chance the world was made privy to a rich woman’s secret hobby. However, if Serena is planning to pull a Shaquille O’Neal and be an athlete/rapper, sister, seriously, stop it.
Serena’s performance is not particularly bad, but she’s not what the rap game has been missing. Sample lyrics include: “I ball hard, no tennis racket / I can’t see these haters through my Gucci glasses.” Serena is a beast at tennis with 13 Grand Slam titles. She has expressed that she doesn’t love tennis anymore, and never actually liked sports. But, mediocre rapper (and that’s being generous) is not a title that benefits her brand.
Entering a new market is not a decision that should be taken lightly. Sometimes the decision is obvious; a market leader may be in the decline or consumers in that segment may be clamoring for your participation. If that isn’t the case, the decision of expanding your brand is one that should be examined carefully. Making the wrong decision can screw up the entire direction of your company or brand.
Stay in your lane is a popular mantra, because entering a new market is risky business. Before you launch a new product or enter a new industry, consider the following:
Does this venture mesh well with your brand’s resources and customer perceptions? Make sure you can handle the financial, emotional and physical challenges competing in a new market requires. It is also critical that your existing customers’ perceptions inform all of your business initiatives. If this new venture alienates your existing consumer base, it’s not worth it.
Are you needed in this new market? Wanting to be involved in a market or industry does not justify entering it. You have to have a viable customer to succeed. Do your research, and make sure your targeted customers are able and willing to support you.
Can you compete? If you cannot provide a customer with a great product that is a complete solution package, they have little reason to leave the supplier they’ve been supporting. If you want to poach customers, you have to be able to provide something bigger or better than what is already available from the start.
Can you sway consumer loyalty? Some industries have more loyal followings than others. Make sure your target audience is willing to leave behind well-established relationships with existing suppliers to support you.
Is this the most profitable path for you to take? This new venture should offer a greater return on investment than any other option. It is always less costly to grow profits from customers and markets you already have secured, than pursuing new territory.
Do you have the time and money needed to enter a new market? Don’t let a new pet project distract you from maintaining your existing business. Be sure you have the time and resources needed to develop and distribute a product/service within the time frame required. Also, understand your costs before you assume your revenues. People typically overestimate their sale projections and underestimate the costs.
Can you anticipate your new competitors’ response? You may be entering the market will all smiles and optimism, but your new competitors will be looking for ways to crush you in infancy. Dropping prices or offering added value are among the tactics established suppliers use to squelch new competition. Figure out if you can sustain a business model that can handle whatever the competition throws at you.