ENTERING THE

EUROPEAN
MARKET
SUCCESSFULLY

HOW-TO GUIDE
 Entering the European Market Successfully
HOW-TO GUIDE

Executive Summary
You are successful in selling your products or services in the domestic market, with a satisfied
client-base that relies on your solution every day. You have proven that you know how to success-
fully build a profitable business. You are managing a team of professionals that are driving your
business and pipeline with qualified opportunities.

At the same time, you need to think about the company’s future, as your goal is to increase
revenues and profits to create continuity and growth. One way to accomplish this is to expand
your geographical market.

Many companies, particularly in North America, turn their eyes toward Europe as an expansion
target, because of perceived cultural and economic similarities as well as lower language barriers.

Leaving your domestic comfort zone to operate in another country or even continent requires
careful planning. Expanding into new geographical markets is very exciting, but also very nerve-
wracking.

Any firm considering entering into international business transactions must understand that doing
business abroad is not a simple task. It is stimulating and potentially profitable in the long-term but
requires much preparation and research prior to the first transaction.

This How-To Guide will describe the steps required to successfully expand into the European
market beginning with understanding market potential, identifying product- market combina-
tions, identifying a local partner, and then launching & selling your solutions.

2 ENTERING THE EUROPEAN MARKET SUCCESSFULLY HOW-TO GUIDE

Understand Market Potential
Europe is probably the most heterogeneous continent on our globe, making understanding
market potential more challenging than in more homogeneous markets.

Because of the European Union, it’s tempting to view Europe as a single market. In reality, you
must consider each country as a market, because each country has a different mix of history,
culture, language, and business etiquette.

To properly understand the potential of the European market, it’s important to research and focus
on the basics:

Target market — Don’t make the assumption that the same target market that has produced
domestic success exists in the same way in the European market.

Existing providers — Very rarely is there a vacuum when it comes to solution providers in the
European market, and the cast of players likely looks very different than it does in the market
you call home. These existing providers will have better presence, partnerships, relationships,
and networks than you will, advantages that can easily negate whatever product advantage
you can provide.

Industry issues — The problems afflicting the industries you target in Europe may differ dramat-
ically from what you see in the domestic market. Just because the industries are the same, it’s
foolish to assume the same problems exist and the same solutions apply.

Trends — Different markets are affected by different trends, and without researching the trends
that influence your target market, your European expansion venture can fail. For example, the
European market is far more sensitive to environmental issues than the North American market.
Costs and technologies that benefit the environment are often embraced in Europe when they
are rejected in other parts of the world.

It is possible to obtain European market information in analyst reports or online. While these
are valuable, there is no substitute for the expertise of in-market business professionals. As you
research your possible entry into the European market, identify local advisors and experts that
have hands-on experience in the region.

3 ENTERING THE EUROPEAN MARKET SUCCESSFULLY HOW-TO GUIDE

Identify Product-Market Combinations
A major trap for companies launching business in Europe is to think that a product or service
that sells well in the domestic market will have success in the European arena too. However, this
is simply not true! To avoid falling into this trap, good market research is not only necessary for
success, but for survival. The goal of your research is:

To identify markets for your products. Use the same product management and marketing
disciplines that lead to domestic success. These generally are product positioning and
market segmentation.

Commit to the identified markets. Once your research has identified the highest value market
segments and product positioning for them, commit fully to them. This means staying focused
on selling only these offerings into identified profitable markets.

Identify a Local Partner

A mistake many companies make when expanding into the European market is believing that a lot
of physical infrastructure and personnel are required.

You don’t need a fancy office and a full-blown sales team to start your first market activities
and prospect visits. For most companies, there are better ways to quickly begin operations and
generate a revenue stream without dealing with:

Recruiting and hiring staff.

Unfamiliar, highly complex employee protective labor laws.
Language differences.
The many other challenges of gearing up a European business presence.

The best thing you can do is partner with an experienced, local business development expert.
A trusted local advisor can help you navigate the cultural and regulatory complexities of the Euro-
pean market, saving your venture much time and frustration, particularly in the critical start-up
phase of operations.

4 ENTERING THE EUROPEAN MARKET SUCCESSFULLY HOW-TO GUIDE

Launch and Start Selling
After spending many hours at the drawing table, your research has identified target countries,
potential markets, and the perfect offering which has appeal to prospects.

You’ve partnered with a local business development expert to have a base of operations and
streamline your entry into the market. Now is the time to pick-up the phone, talk to your market,
and get the sales machine working.

Use your initial market contacts as a “soft launch” into the market. While it’s ideal to sell some-
thing as a result of these early sales contacts, use the intelligence you gain from these contacts
to validate your research about target markets and your value proposition.

Don’t be afraid to change your sales pitch, narrow down the target market, or change your
pricing. Adapt as necessary to succeed.

Once you’ve validated that your European business model is working, it’s time to scale up your
sales efforts and market presence.

Bottom Line
Approach your international opportunity in the same way you would your domestic operations
– using sound business fundamentals. A local advisor can help you develop an international
marketing plan, assess your present market situation, business goals and commitment - all of
which will increase your opportunity for success in the European market.

5 ENTERING THE EUROPEAN MARKET SUCCESSFULLY HOW-TO GUIDE

 Action Plan
STEP 1 - Gauge Market Potential

Gauge Access Real Insights into

1 Market
Potential Other Marketplace Potentials

Don’t let your domestic success

Identify Market-
2 Specific lead you to assume success in
Europe is guaranteed. Use a
Offerings
disciplined approach to study
the market. Assume that the
European market operates
differently than the domestic
Identify a Local
3 Partner
market, because it does.

Your assessment of market

potential needs to consider
which target market(s) is ideal,
who the existing providers
Begin Sales
4 Operations
are, how industry issues
differ, and what trends are
influencing the market.

Market Segmentation and Analysis Tool

VIEW RESOURCE

6 ENTERING THE EUROPEAN MARKET SUCCESSFULLY HOW-TO GUIDE

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