The document discusses various entry strategies for entering new markets, including developing new products, franchising, sponsorship, acquisitions, and using partial momentum. It provides details on each strategy, such as the steps to develop a new product strategy, the benefits and responsibilities of franchising partnerships, different types and benefits of sponsorship, reasons why companies pursue acquisitions, and how momentum strategies work.

1. ENTRY STRATEGIES
MODULE- 2

2. ENTRY STRATEGIES
• A market entry strategy is the planned method of delivering goods
or services to a new target market and distributing them there. When
importing or exporting services, it refers to establishing and
managing contracts in a foreign country.
Some of the types of Entry Strategies are
1) New Product
2) Franchising
3) Sponsorship
4) Acquisition
5) Partial Momentum

3. 1. NEW PRODUCT
• With a well-considered new product development (NPD) strategy,
you can avoid wasting time, money and business resources. An NPD
strategy will help us to organize our product planning and research,
capture customers' views and expectations, and accurately plan and
resource the NPD project. The NPD strategy formed will help us to
avoid:
 overestimating and misreading your target market
 launching a poorly designed product, or a product that doesn't meet
the needs of your target customers
 incorrectly pricing products
 spending resources you don't have on higher-than-anticipated
development costs
 exposing your business to risks and threats from unexpected
competition.

4. • There are several important steps that will need to plan into our
NPD strategy:
a) Define the product
b) Identify market needs
c) Establish time frames
d) Identify key issues and approaches
a) Define the product: An accurate description of the product that
we are planning will help us to be focused and avoid NPD pitfalls
such as developing too many products at once, or running out of
resources to develop the product.
b) Identify market needs: Successful NPD requires a thorough
knowledge of your target market and its needs and wants. A
targeted, strategic and purposeful approach to NPD will ensure
whether the products fit to the market.

5. c) Establish time frames:
• It is always necessary to allow adequate time to develop and
implement a new products.
• There should always be a time frames and deadlines for
developing and implementation of a new product
• A time frame is maintained with the aim to achieve a specific
launch date will be influenced by demand of he new product.
• The aim to be responsive to your customers' needs and
demands will require time for research to ensure you develop
the right products at the right time.

6. d) Identify key issues and approaches
• There are many tasks involved in developing a product
that is appropriate for the customers.
Key tasks include:
• generating and screening ideas
• developing and screening concepts
• testing concepts
• analyzing market and business strategy
• developing and market testing products
• implementing and commercializing products.

7. 2. FRANCHISING
• Franchising is a long term partnership and companies who wish to
be successful must recognize the true nature of the relationship, and
the responsibilities on each partner.
• Typically a franchisee will pay a franchisor: a license or purchase
fee. a percentage of the sales or profits. an annual fee.
• Franchising is one of three business strategies a company may use
in capturing market share.
• The others are company owned units or a combination of company
owned and franchised units.
• Franchising is a business strategy for getting and keeping customers.
It is a marketing system for creating an image in the minds of
current and future customers about how the company's products and
services can help them.
• It is a method for distributing products and services that satisfy
customer needs.

8. • Franchising is a network of interdependent business
relationships that allows a number of people to share:
• A brand identification
• A successful method of doing business
• A proven marketing and distribution system
• In short, franchising is a strategic alliance between groups of
people who have specific relationships and responsibilities with a
common goal to dominate markets, i.e., to get and keep more
customers than their competitors.
Some of the Advantage of franchising are:
• Freedom of employment
• Proven products and services
• Proven trademark
• Reduced risk of failure
•

9. 3. SPONSORSHIP
• To sponsor something is to support an event, activity, person, or
organization financially or through the provision of products or
services.
• Sponsorship is when a company commits money or resources to a
nonprofit event or program in exchange for specific promotional
benefits. At its core, sponsorship is an exchange of money for
services.
• The individual or group that provides the support is known
as sponsor.
• The terms and conduct of sponsorship should be based upon the
principle of good faith between all parties to the sponsorship. There
should be clarity regarding the specific rights being sold
• The main reason why sponsorship is an entry strategy is
 Cultivate credibility
 Build brand awareness
 Increase reach
 Engage with our audience
 Generating leads

10. CATEGORIES OF SPONSORSHIP
• Title sponsor is highest status of sponsorship. It characterizes
the most significant contribution to a company in organizing
and hosting an event. Often the name of such sponsor is placed
next to the name of competition, teams, individual athletes and
is associated with it (for example, the logo of a title sponsor is
placed on a uniform of football club teams).
• General sponsor is a sponsor that makes one of the largest
contributions (in absence of a title sponsor - usually more than
50% of all sponsorship funds raised) and that receives for it
the right to use the image of competition as well as extensive
media coverage.

11. • Official sponsor is a sponsor that makes a certain part of
raised funds (within 20-25%). Typically, the given status may
be granted by category like official insurance partner or
official automotive partner etc.
• Technical sponsor is a sponsor which promotes organization
of sporting events through the partial or full payment of goods
and services e.g. medical equipment, fitness, organization of
transportation and lodging etc.
• Participating sponsor is a company, the sponsorship fee size
of which usually does not exceed 10% of total raised funds.
• Informational sponsor is an organization that provides
informational support through media coverage, conducting
PR-actions, joint actions, etc.

12. 4. ACQUISITION
• An acquisition is a corporate action in which a company buys
most, if not all, of another firm's ownership stakes to assume
control of it.
• An acquisition occurs when a buying company obtains more
than 50% ownership in a target company.
• As part of the exchange, the acquiring company often
purchases the target company's stock and other assets, which
allows the acquiring company to make decisions regarding the
newly acquired assets without the approval of the target
company’s shareholders.
• Acquisitions can be paid for in cash, in the acquiring
company's stock or a combination of both.

13. Why Make an Acquisition?
Companies perform acquisitions for various reasons.
1. They may be seeking to achieve economies of scale, greater market share,
increased synergy, cost reductions, or new niche offerings.
2. If they wish to expand their operations to another country, buying an existing
company may be the only viable way to enter a foreign market, or at least the
easiest way
3. The purchased business will already have its own personnel (both labor and
management), a brand name and other intangible assets, ensuring that the
acquiring company will start off with a good customer base.
4. Acquisitions are often made as part of a company's growth strategy when it is
more beneficial to take over an existing firm's operations than it is to expanding
on its own.
5. To find higher growth and new profits, the large firm may look for promising
young companies to acquire and incorporate into its revenue stream.
6. When an industry attracts too many competitor firms or when the supply from
existing firms ramps up too much, companies may look to acquisitions as a way
to reduce excess capacity, eliminate the competition, or focus on the most
productive providers.
7. Research and development may be too difficult or take too much time, so the
company offers to buy the existing assets of a company that has already gone
through that process

14. Partial Momentum
• If a trader wants to use a momentum based
strategy he takes a long position in a stock or
asset that has been trending up.