Market entry and market expansion in Europe and beyond

The EU is one of the world's most populous regions, with over 742 million people as of 2022, making it the third most populous after China and India.

In 2022, the EU's GDP was approximately €15.8 trillion, making it the third-largest economy in the world after the United States and China.

Europe is one of the world's largest traders, both in terms of exports and imports. It has numerous trade agreements with countries and regions around the world. The EU operates a Single Market, which allows for the free movement of goods, services, capital, and people among member states. This creates a seamless economic zone with common regulations and standards.

Market entry in Europe requires thorough market research, localization of products and strategies, and compliance with diverse regulations, while market expansion beyond Europe necessitates adapting to unique cultural and economic landscapes, establishing effective distribution networks, and crafting region-specific marketing campaigns.

Both endeavors demand careful planning and a flexible approach to cater to diverse customer preferences and business environments.

Marketing consulting services in Europe

The marketing consulting services in Europe are thriving, with steady growth over the decades.

In 2021, global market was valued at about 22 billion euros, including a wide range of services such as digital marketing, branding, market research, and strategy development.

Marketing consulting services cater to various industries, including retail, finance, technology, and more.

The European marketing consulting industry has seen intense competition. Many large global consulting firms, as well as boutique agencies, operate in the region. This competition has led to innovation and high specialization. Market research firms offer insights into local and regional markets, helping companies tailor their strategies.

Both start-ups and large reputable companies planning investment projects in the EU, are seeking marketing consulting services to compete effectively in the digital landscape, driving demand for more accessible and cost-effective solutions.

Technology integration plays an important role in the local market. Marketing consultants have increasingly integrated technology solutions into their services. Automation, data analytics, and customer relationship management (CRM) have been key focus areas to help businesses make data-driven decisions. With the increasing importance of online presence and e-commerce, companies have sought expertise in areas like social media marketing, and content marketing.

Consultants have had to stay updated with evolving data protection and privacy regulations in Europe, such as GDPR.

This has influenced marketing strategies and data management practices. European companies have also been increasingly interested in integrating sustainability and environmental, social, and governance (ESG) principles into their marketing strategies.

Table. Some of the main areas of marketing consulting services

Areas	Brief description
Market research and analysis	• Gathering and analyzing market data to identify opportunities and threats. • Consumer behavior analysis and market segmentation. • Competitor analysis and benchmarking.
Marketing strategy development	• Creating comprehensive plans and strategies aligned with business goals. • Identifying target audiences and defining value propositions. • Setting marketing objectives, budgets, and timelines.
Digital marketing	• Search engine optimization (SEO) to improve online visibility. • Pay-per-click advertising campaign management. • Social media marketing strategy and management. • Content marketing strategy and content creation. • Email marketing and automation.
Branding and positioning	• Brand development and brand identity creation. • Brand positioning and differentiation. • Brand messaging and storytelling.
Marketing communications	• Developing integrated marketing communication plans. • Crafting compelling marketing messages and content. • Public relations and media relations. • Crisis communication planning.
Market entry and expansion	• Assisting businesses in entering new markets or expanding existing ones. • Market entry strategy development. • Localization and adaptation of marketing efforts.
Product and service launch	• Market analysis and pricing strategy for new offerings. • Planning and executing product or service launch campaigns. • Go-to-market strategies.
Customer Relationship Management (CRM)	• Implementing CRM systems and strategies to improve customer engagement. • Customer journey mapping and touchpoint optimization.
Analytics and data insights	• ROI analysis and key performance indicator (KPI) tracking. • Data collection and analysis to measure marketing performance. • Data-driven decision-making support.
Sustainability and ESG	• Advising on marketing strategies aligned with environmental, social, and governance (ESG) principles. • Sustainability reporting and communication.
Sales and marketing alignment	• Ensuring alignment between sales and marketing efforts to drive revenue. • Sales enablement strategies and content development.
Event marketing	• Planning and executing large corporate events and trade shows. • Event marketing strategy and promotion.
E-commerce and online retail	• E-commerce strategy development. • Conversion rate optimization. • Online marketplace and channel management.
International marketing	• Developing effective strategies for marketing in international markets. • Cross-cultural marketing and localization.
Regulatory compliance and ethical marketing	• Advising on marketing practices that comply with relevant EU regulations. • Promoting ethical and responsible marketing.
Innovation and technologies	• Exploring and integrating new marketing technologies and trends, such as VR. • Innovation-driven marketing strategies.
Surveys and feedback analysis	• Gathering customer feedback and conducting surveys. • Analyzing customer sentiment and feedback to drive improvements.
Training and workshops	• Skill development and knowledge transfer. • Providing training programs and workshops for marketing teams.

Professional marketing consulting services can be tailored to a company's needs and goals.

Consultants work closely with businesses to understand their challenges and opportunities before developing customized strategies and solutions.

Key steps and considerations for market entry and expansion

Market entry and expansion require a well-thought-out strategy, adequate resources, and the ability to adapt to changing circumstances. It is crucial for companies to approach each market individually and exercise patience as they build their presence and reputation.

Entering and expanding into new markets, whether in Europe or elsewhere, requires very careful planning and strategy.



Here are some steps and considerations for market entry and expansion, that large businesses can widely use at various stages of their development.

Market research

The company should begin by identifying the target market(s) based on factors like demand, competition, and regulatory environment.

In Europe, a wide range of countries is available for consideration, each with its own unique characteristics.

Comprehensive analysis of the size and growth potential of the chosen market is essential. Factors such as gross domestic product, population, and consumer trends should always be considered. Understanding the competition, including both local and international players, is crucial. Identifying gaps in the market that the company's product or service can fill is essential.

Researching the legal and regulatory requirements in the target market is also necessary. This includes studying industry-specific regulations, potential trade barriers, and compliance issues.

Market entry strategy

The company can initiate market entry by exporting its products or services to test the waters.

This approach carries lower risk but may limit the company's control. Collaboration with local partners can be a viable strategy to leverage their market knowledge and resources.

If applicable, the company may consider franchising its business model to local entrepreneurs in host country. Establishing a local subsidiary or branch may be necessary if the business is strongly committed to a long-term presence and possesses sufficient resources.

Business plan development

The company should develop a detailed business plan that outlines its market entry strategy, as well as sound financial projections, and marketing strategy. The plan should include a budget for market research, legal compliance, marketing, and operational expenses.

Regulatory compliance

Ensuring compliance with all European and local regulations and standards is imperative in modern marketing. This may involve obtaining product certifications, necessary permits and licenses.

Marketing and branding

The company should tailor its marketing and branding strategies to suit the local market. Localization is key, encompassing language, cultural nuances, and consumer preferences. Consideration should be given to digital marketing, social media, and local advertising to effectively reach the target audience.

Distribution and logistics

Efficient distribution channels should be established to ensure the smooth flow of products or services into the market. Logistics should be optimized to minimize costs and delivery times.

Adaptation and flexibility

Large business should be prepared to adapt its products, services, and strategies based on feedback received from the international market. Maintaining flexibility and being open to making changes as the company learns more about the European market is essential.

Talent and workforce

Hiring local talent who possess an understanding of the market and can navigate business nuances is advisable. The company should invest in training its workforce to align with its objectives.

Risk management

The company should assess and manage high risks associated with currency fluctuations, political instability, and market volatility. Consideration should be given to insurance and hedging strategies to mitigate financial risks of large investment projects.

Monitor and evaluate

This includes continuous monitoring of market performance and gathering of feedback from customers and stakeholders is vital. Regular evaluation of the strategy and making necessary adjustments are also essential for long-term success.

If the company plans to expand beyond Europe, research into the target region(s) in terms of market dynamics, cultural differences, and regulatory requirements is crucial. Consideration should also be given to partnering with local experts to provide guidance and insights into the expansion efforts.

Market entry services

Market entry services refer to a set of professional consulting and support services designed to help businesses successfully enter new markets, whether they are expanding internationally or entering a new regional or local market. These services are typically provided by specialized consulting firms or experts and can vary depending on the specific needs and objectives of the entering company.

Below are the main services within the framework of entering the market:

1. Market research and analysis: Conducting comprehensive market research to understand the target market's dynamics, including market size, growth trends, and competitive landscape.

2. Market entry strategy development: Creating a tailored market entry strategy that outlines the best approach for entering the market. This may include strategies such as exporting, licensing, franchising, joint ventures, partnerships, or establishing a subsidiary.

3. Regulatory and compliance guidance: Assisting with understanding and complying with local regulations, trade laws, customs requirements, and industry-specific EU regulations.

4. Market feasibility studies: Evaluating the feasibility of entering a specific market by assessing factors like demand, competition, investment requirements, and potential risks.

5. Business planning: Developing a detailed business plan that outlines objectives, budgets, timelines, and resource allocation for the market entry initiative.

6. Legal and contractual support: Providing legal assistance in contract negotiations, intellectual property protection, and establishing legal entities in the new market.

7. Localization and cultural adaptation: Helping companies adapt their products, services, marketing strategies, and branding to the cultural and linguistic nuances of the market.

8. Distribution and supply chain setup: Identifying and establishing efficient distribution channels, logistics networks, and sourcing strategies to ensure product availability.

9. Marketing and promotion: Creating strategies and promotional campaigns tailored to the local market, including digital marketing, advertising, and public relations efforts.

10. Financial planning and investment support: Advising on financial aspects such as capital allocation, investment financing, and currency risk management.

11. Market entry risk assessment: Identifying potential risks and challenges associated with market entry and developing risk mitigation strategies.

12. Partner and vendor selection: Assisting in identifying and evaluating potential local business partners, suppliers, and distributors.

13. Market entry execution: Supporting the actual implementation of the market entry strategy, including legal setup, product launches, and initial marketing campaigns.

14. Post-entry support: Providing ongoing support and consulting services to monitor and optimize the company's performance in the new market.

15. Competition analysis: Continuously monitoring and analyzing the activities of competitors in the new market and making strategic adjustments as needed.

16. Local talent recruitment: Assisting in recruiting and hiring local talent with expertise in the particular market, local culture, and language.

17. Trade relations: Facilitating interactions with government agencies, trade associations, and chambers of commerce to navigate regulatory issues and build relationships.

Market entry services help businesses navigate the complexities of entering unfamiliar markets, mitigate risks, and increase the chances of success in their new ventures. The specific services required depend on factors such as the industry, target market, and the company's objectives.

Market penetration

Market penetration services refer to strategies and techniques used by businesses to increase their market share within their existing market or customer base.

This involves gaining a larger portion of the market's potential customers or increasing the usage of a product or service among current customers. Market penetration is one of the four growth strategies outlined in the Ansoff Matrix, which also includes market development, product development, and diversification.

The essence of market penetration services is to maximize the revenue and profit potential within the current market by the following:

1. Attracting new customers who haven't yet used the product or service.
2. Encouraging existing customers to buy more frequently or in larger quantities.
3. Gaining a larger share of the existing market by outperforming competitors.
4. Making products or services more affordable or attractive to potential customers.
5. Improving existing products or services to make them more appealing to customers.
6. Increasing brand awareness and promoting products and services more effectively.

The concept of market penetration has been around for a long time and is a fundamental aspect of business strategy.

It became more prominent with the work of Igor Ansoff, a Russian-American mathematician and business management expert, in the mid-20th century. The aforementioned Ansoff's matrix, introduced in 1957, outlined different growth strategies for businesses, with market penetration being one of them.

Table. Main types of market penetration services

Types of services	Brief description
Price reductions and discounts	Lowering prices or offering special discounts to attract price-sensitive customers. This can include seasonal sales, promotional offers, or loyalty programs.
Advertising and promotion	Increasing marketing efforts to raise awareness and attract new customers. This can involve digital marketing, traditional advertising, and social media campaigns.
Product bundling	Combining related products into packages to encourage customers to buy more. Bundling often provides cost savings compared to purchasing items individually.
Customer loyalty programs	Rewarding loyal customers with incentives, such as points, discounts, or exclusive access, to encourage repeat purchases.
Market expansion	Expanding into new geographic regions or demographics within the current market to tap into unexplored market segments.
Product improvement	Continuously enhancing the quality, features, or performance of existing products or services to maintain or increase customer satisfaction.
Distribution channel optimization	Improving the distribution network to make products more accessible to customers. This can involve adding new distribution channels or optimizing existing ones.
Competitive strategies	Analyzing and responding to competitors' actions, such as countering their marketing campaigns or differentiating products to gain a competitive edge.
Customer feedback and service	Actively seeking customer feedback and using it to improve products or services based on customer preferences and needs.
Cross-selling and upselling	Encouraging customers to buy complementary or upgraded products or services. This can be done through sales techniques, recommendations, or product bundles.

Professional market penetration services are essential for large businesses looking to grow within their existing European markets before considering expansion into new markets or diversification into new products or services.

Effective market penetration strategies can help companies solidify their position, increase revenue, and achieve sustainable growth.

Market expansion

Market expansion services (MES) refer to a range of strategies and activities that large businesses undertake to enter and expand into new geographic markets or reach previously untapped customer segments within their existing markets. MES involves various approaches, partnerships, and initiatives to grow a company's presence and customer base.

Expanding into the European market can be complex and challenging, but with thorough research, careful planning, and a flexible approach, foreign business can tap into the diverse and potentially lucrative European consumer base. Consulting with our experts can also be beneficial in navigating the complexities of the EU market.



Below we have placed an overview of international market expansion services:

Market research and analysis

Before expanding into a new (foreign) market, companies often conduct thorough research to understand market dynamics, customer preferences, competition, and regulatory factors. This research helps in making informed decisions about market entry.

Market entry strategies

• Exporting: Selling products or services to customers in foreign markets. This can involve direct exporting, indirect exporting through intermediaries, or e-commerce platforms.

• Franchising: Allowing independent business operators (franchisees) to use famous brand, products, and services in exchange for fees or royalties.

• Joint ventures: Close partnering with a local business in the target market to share financial, technological and intellectual resources, risks, and expertise.

• Licensing: Granting a license to another company in the target market to use necessary intellectual property, technology, or brand.

• Wholly-owned subsidiaries: Establishing a new legal entity in the target market, which is fully owned and controlled by the parent company.

• Strategic alliances: Collaborating with other businesses, including competitors, to enter the market together or leverage each other's strengths.

Distribution and supply chain management

Developing an effective distribution network in the new market to ensure products or services reach customers efficiently and on time. This may involve setting up warehouses, logistics partners, and supply chain optimization.

Marketing and promotion

Tailoring marketing and promotional strategies to the specific needs and preferences of the target market. This includes localized advertising, branding, and cultural sensitivity.

Regulatory compliance

Complying with local laws, regulations, and standards that pertain to the industry and market, including trade restrictions, licensing requirements, and quality standards.

Product localization

Adapting products or services to suit the local market's language, culture, and preferences. This may involve translating content, modifying product features, or adjusting pricing strategies.

Customer support and service

Offering effective customer support and service in the target market, which may include setting up local customer service centers, providing multilingual support, and addressing cultural differences.

Risk assessment and mitigation

Identifying and mitigating potential risks associated with market expansion, such as currency fluctuations, political instability, or changes in consumer behavior.

Talent acquisition and training

Hiring and training local talent to manage operations, sales, and customer service in the new market. This helps ensure cultural understanding and effective local operations.

Post-entry evaluation

Continuously monitoring and evaluating the performance of the expansion effort. This involves analyzing sales data, feedback, and market trends to make necessary adjustments to strategies.

Mergers and Acquisitions (M&A)

Acquiring existing businesses in the target market to quickly establish a presence or expand operations. M&A can provide access to established customer bases and distribution networks.

E-commerce and online marketplaces

Leveraging online business platforms and large marketplaces to reach international customers without the need for physical presence in the new market.

Market expansion services are crucial for companies seeking to grow their market share and revenue by tapping into new geographic areas or demographics.

Successful market expansion requires careful planning, flexibility and a deep understanding of local market conditions and customer behavior, understanding market dynamics, identifying opportunities and threats, and developing effective market entry and growth strategies.

It often involves a combination of the strategies mentioned above, tailored to the specific goals and challenges of each expansion effort.