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Test Markets

I Strategy Audit

Can we rely on our actual strategy?

 

 II Test Markets

Before starting a close co-operation with a future distribution partner it is worthwile to acquire a good knowledge of the market by oneself. This is very useful in respect of getting to know important contact persons and the build up a good and reliable market knowledge. This helps to evaluate the capabilities of the distribution partners.

With a test market you can check your market entry strategy and collect important information under real market conditions. After such a test market you should be able to make your GO/NO GO decision.

Criterias for such a decision are:

Market:

Market potential/Market volume/Market segments
Target groups
Competitors
Product range

Price level
Distribution channels
Market trends

Infrastructure and Ressources:

Existing success factors (Unique Selling Propositions)
Competitive advantages
Production facilities
Personnel and Know How