What are the best ways to test a new product's market expansion potential?

With the ease of data available, its easy to figure out the market demands and plan accordingly. A good example here would be the Indian market where cost of product prevailed over quality. Top companies refrained from launching their flagship stores in India and with changing economies, brands are pouring in and are competing with established brands. We now see Gucci, Louis Vuitton, Chanel stores which was a dream for Indian buyers nearly a decade ago. Brands understood the change in purchase power and started opening stores.

My top 3 picks on understanding market potential of a new product will be: 1. Market Research and Surveys: Gather feedback from customers and analyze market trends. Study competitors and assess regulatory considerations. 2. Pilot or Soft Launch: Introduce the product on a small scale in the new market. Monitor reception, gather feedback, and make necessary adjustments. 3. Partnerships and Alliances: Collaborate with local businesses or distributors. Leverage existing networks for market entry. We need to approach market expansion strategically, adapting based on feedback and while considering cultural and logistical differences.

PRETOTYPE AND TEST LIKE TESLA As innovation facilitator of 100+ projects, I like to share how Tesla interested buyers for their first car. In 2003, the founders of Tesla had an ambitious idea (an all-electric 2-door sports car). In order to convince potential buyers to order its car, Tesla created a pretotype of what the car would look like. Lotus supplied Tesla with a ‘glider’ Elise - which was filled with models of key components. This was not a prototype, because the vehicle didn’t function. Tesla was able to show buyers a close proxy for the final design. Tesla asked “Will you put down a $5,000 deposit to have it built to order? From this test Tesla secured several hundred deposits, a non-trivial result to reassure their Investors

Validating value proposition does not mean you have to have the final product. You can even validate your idea first to see the demand. Keep it simple, if your idea is good, the traction will be there. If the idea is bad, then at least you did not waste your time building an unvalidated product.

Being a Partnership's manager, I think that I have understood is that NO ONE METHOD applies to all locations. While cold emails work best at some places, other places need a brochure handout. Social Media works in one part of the world and then, word of the mouth is respected at low income markets. A good way to identify what works best in a market would be to start A-B testing with the best options available and ensuring that the brand is heard by not only the audience, but by the eventual customer.

While, doing your own market research is important. it is equally important to understand how a company can blend into the target market. In my view, Target market's can be rightly termed as glocal(global + local). It is imperative that the cultural & political issues of the target market are addressed. This is where the local partners can help tremendously. They can help you understand the ground reality and will offer the best advice on how the product will perform. This exercise can easily beat the quality of data availed through expensive market research activities. Their knowledge of the growth potential will enable the company to find the right personnel to manage the location and contribute to the success of the product.

No matter how good the product is. I've found it helpful to ensure customers get the best aftersales services. It's the most important metric in my book. One satisfied customer will bring in 50 more in the coming 10 years and the opposite for negative experiences. Not only continuous enhancement in features help reduce the complaints. Better response time and a quick TAT is equally important.