Expand Globally Through Partnership Strategy

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For brands looking to expand their global footprint, partnerships offer an attractive and cost-effective strategy for doing so.

Any international expansion comes with myriad challenges unique to each market. The sheer complexity of navigating economic conditions, cultural nuances, language intricacies, in-market competition, and market maturity, can be overwhelming.

But by being mindful of various considerations, brands and marketers can ensure the highest degree of success.

Understanding the Market Landscape

Before venturing into new regions, brands must have a comprehensive understanding of the economic environment there.

That includes recognizing currency fluctuations and conversion challenges, which can directly impact pricing strategies and profit margins. Understanding legal and regulatory differences is also vital and can make or break a brand's foray into a new country.

Cultural and Linguistic Differences

Though English is widely spoken globally, there's a vast difference between American English and King's English. The challenge is not just linguistic but also cultural. For instance, what may be considered humorous in one country may be offensive in another.

The onus is on marketing teams to localize content, ensuring it resonates with local sensibilities.

Organizational Challenges and the Need for Local Expertise

CMOs must consider the optimal organizational structure that best supports their expansion goals.

To succeed, the right marketing resources must be in market—marketers who can operate well autonomously, work independently to bring ideas to life, and be entrepreneurial in finding resources to help support execution.

They must also have the ability to forge relationships in regions with senior- and junior-level resources internally, and externally to generate consensus, collaboration, and generally support.

Success also requires someone with a strong aptitude for marketing strategy who can distinguish between approaches and tactics that will resonate in a new market but can also replicate and draw upon success in other markets that may be transferable.

Deciding the Right Marketing Strategy

Marketing needs to determine what marketing strategy will resonate best with audiences in the region and drive activity against the desired outcomes or key performance indicators (KPIs). For example, is a digital campaign sufficient, or do in-person experiences create a deeper brand connection?

The marketing programs need to further balance language differences, such as using American versus King's English or deciding when it is appropriate to send global communications in English versus localizing to native languages.

Harnessing the Power of Partnerships

Partnerships deliver value to marketers in four key areas for brands seeking global expansion:

Audience reach. Strategic partners can provide instant access to established audiences, giving brands a head start. The pay-for-performance model of partnership marketing, the partner's dedicated following, and the trust they have built with their audiences make partnerships an invaluable asset to brands planning their expansion strategy.
Local knowledge. Local partners already have local awareness in a region, country, or market. They are established in the market. They know what products, messages, and promotions resonate with audiences. They have teams on the ground that understand the language differences and can navigate regulatory frameworks.
Competitive intelligence. Because they already operate within the market, partners can provide brands with insights about competitors' strategies, helping brands to refine their own approach.
Cost-effectiveness. The biggest benefit of partners is the cost-effective growth they offer in helping brands meet audiences, drive awareness, and stimulate demand and conversion, all while subsidizing the cost to be present in other channels that are growing increasingly expensive in which to operate: search, social, and display.

Choosing Strategic Partners

Brands need to ensure that the partners they choose align with their long-term vision. Partners should not just drive growth but also provide insights that help brands understand and cater to local audiences better.

To determine the effectiveness of potential partners, brands should consider two primary factors:

Audience demographics. Looking at a partner's audience demographics is a good leading indicator of whether or not the partner has the desired reach. Marketers don't want to waste precious time and resources with a partner that is not going to help them reach buyers in the markets they are looking to expand into.
Performance metrics. When setting KPIs to measure a partner's performance, it is essential for brands to look deeper than ROAS, which is a short-term efficiency metric. Instead, look at long-term, lagging indicators, such as customer lifetime value. Are these partners helping to acquire high-value, sticky consumers who will provide significant long-term value? That is where brands will discover a partner's ultimate value.

Partnerships in Practice

Organizations can take several steps before implementing a partnership strategy in their global expansion efforts that will ensure the highest level of success:

Market analysis: Perform a full total addressable market (TAM) and SWOT analysis.
Persona work-up: Identify the ideal customer profiles and their key attributes. Ask questions, such as these: What destinations do they frequent? What are they motivated by? What do they read? How do they spend their free time?
Goal-setting: Define specific objectives that will be measured by KPIs.
Local adaptation: Tailor marketing messages and materials to local audiences.
Commission payouts: Understand whether partners expect to be paid in local currency.
Legal framework: Become familiar with any legal terms and conditions specific to each new market.

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International expansion can appear to be a daunting challenge. Certainly, there are complexities involved. But partnerships offer a cost-effective model for navigating these waters, and they present brands with an excellent opportunity for market and revenue growth.