The time has come to present the final component of the CPA-CAGE-PMA framework for global expansion: Product Market Analysis (PMA). Hence, this stage focuses on determining whether a product or portfolio aligns with the potential market. Achieving an accurate result requires complete honesty.
Typically, product managers or market managers will develop a set of Unique Selling Propositions (USPs) before launching a product. This process involves analyzing the market, assessing the solution in relation to the competition, and highlighting the product’s unique advantages to address current market needs.
While this final step may seem like a straightforward task that has been done numerous times before, the answer is both yes and no. However, presenting product’s capabilities effectively is always essential, it’s critical that potential customers can easily recognize the solution’s strengths and its relevance to their needs. Ensuring clarity and highlighting the most valuable features are key to a successful product launch.
The primary distinction between developing product USPs and conducting a PMA lies in the need for honest self-reflection
To ensure the framework delivers the most accurate results, honest self-reflection on the product or portfolio’s capabilities is essential. The CPA-CAGE-PMA framework is designed for internal use, helping to shape the right strategy for global expansion.The intention is not to become part of an external marketing or sales proposition.
It is often advisable to incorporate customer feedback and analyst insights into this evaluation. It is important for an organization to stand confidently behind its product or portfolio. That doesn’t necessarily mean the product is the best in its category. Objective evaluations from third-party sources often provide the most valuable insights.
Before delving into the specifics, it’s important to recognize that the product capabilities required in the home market may differ significantly from those in other markets. Hence, ignoring these differences could hinder success, so they must be carefully considered in the analysis.
PMA attributes to consider
Hence, to conduct a strong global expansion Product Market Analysis, the following attributes should be taken into account:
- Key Features (Capabilities): Analyze the key capabilities of the product or portfolio. While assessing their relevance and importance in each target market.
- Enabling Conditions: This can encompass a wide range of factors that currently support the product. Key attributes to be considered include:
- Sales Channels: Evaluate the availability and maturity of potential sales partners in the market.
- Market Leadership: Identify the current competitors leading the market and assess their market share.
- Competition: Examine how many competitors are active in the market today and how deeply embedded they are within it.
- Price Levels: Consider whether your products can be competitively priced in potential markets.
- Cost of Entry (or Delaying Entry): Analyze the opportunity costs involved in entering the market, including potential lost opportunities if entry is delayed. Elements to consider are:
- Marketing Investment: Consider the level of marketing investment required to make your product visible and position it as a strong alternative.
- Sales Investment: Assess the resources needed to set up a local sales team or onboard the first sales partners. It is crucial to factor in the lead time required to close the initial deals.
- Market Maturity: Evaluate the maturity of the market to determine whether there is still an opportunity to enter. Or if the window for entry has already passed..
By integrating all the elements discussed in this and previous blogs, the framework can provide a clear indication of where global expansion efforts are likely to succeed in the short term. Additionally, it can highlight markets that may require more time to enter. As well as those that should be considered of low priority or not worth pursuing.