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Beachhead 

market
• Beachhead market is used for start-up companies or companies
looking to extend and diversify its product range to get a foothold on
new markets by using small steps. It is mostly used in international
trade by companies which seeks new market opportunities in different
countries. Beachhead market is used as a basis to invasion on whole
market in new country or geographic area. Using this market entry 
strategy requires that customers in nearby market have similar
market needs and buy similar products, competition is relatively small
(as in situation when product uses new technology), and 
communication between beachhead market and nearby markets is
very good to spread the news about new attractive products.
Example of Beachhead market

• A beachhead market could include a specific geographic region,


demographic, or type of customer. For example, a company
may decide to focus on a small city or town when launching a
new product. This would allow them to better understand the
market and customer needs in that area. Another example
could be focusing on a specific demographic such as millennial
males when launching a new product. This would allow the
company to gain a better understanding of the needs of this
demographic and how their product or service could be
tailored to meet those needs
Primary meaning of the term

• Meaning of this term was coined in military strategy, as a way to


invade territory of enemy by concentrating on small area
(beachhead) from which further attacks could be performed.
The term of the beachhead market refers to the landing of the
Allies in Normandy in 1944. Allied concentrated their forces on
the Omaha beach, which was a beachhead for them, and from
here they invaded Europe. Such a tactic allowed them to win
World War II. This concept was presented for the first time in
Geoffrey Moore's book entitled "Crossing the Chasm" (G.
Moore 2002, s. 68).
When to use Beachhead market

• Beachhead markets are an ideal strategy for companies entering a new market or
launching a new product. This strategy allows companies to focus their resources and
attention on a specific area or set of customers in order to gain a better understanding
of the market and build a presence in the larger market. Companies can use the
beachhead market strategy to test new products, gain customer feedback, and develop
relationships with customers. Additionally, beachhead markets can be used to identify
potential customers, understand customer needs, and test pricing strategies.
• In summary, beachhead markets are an ideal strategy for companies entering a new
market or launching a new product. This strategy allows companies to focus their
resources and attention on a specific area or set of customers in order to gain a better
understanding of the market and build a presence in the larger market. Companies can
use the beachhead market strategy to test new products, gain customer feedback, and
develop relationships with customers, as well as identify potential customers,
understand customer needs, and test pricing strategies.

Types of Beachhead market

• Geographic Beachhead Markets: A geographic beachhead market is a


specific region or area that a company can focus its efforts on in order
to gain a foothold in a larger market. Companies often use this type of
market to target a specific demographic or group of customers.
• Niche Markets: Niche markets are specialized markets that focus on a
specific product or service. Companies often use niche markets to test
new products or services before launching them into the larger market.
• Industry-specific Beachhead Markets: Industry-specific beachhead
markets are markets that focus on a specific industry. Companies often
use this type of market to gain a better understanding of the industry
and gain a foothold in the larger market.

Steps of Beachhead market

• Selecting a market: The first step of the beachhead market strategy is to select a market
that can act as the point of entry into a larger market. Companies need to consider
factors such as the size of the market, the potential customer base, and the level of
competition.
• Focusing resources: Once a market has been selected, companies need to focus their
resources and attention on this specific market. This may include increasing marketing
efforts, implementing customer service initiatives, and developing relationships with
customers.
• Testing products: Companies can use their beachhead market to test their new
products or services. This can help them gain feedback from customers and refine their
product before launching it in a larger market.
• Establishing relationships: Companies can use their beachhead market to establish
relationships with customers. This can help them gain a better understanding of their
market and build a larger presence in the larger market.

The conditions necessary for a beachhead market

• The conditions defining a beachhead market (B. Aulet 2013, s.


103):
• a similar product are available and buying by customers
• there are similar sales cycles and the value of the product
launched on the market will be similar to available product
• easy flow of information about new products between clients

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