The role of localization in a market entry strategy

Are you looking to enter new markets? Then localization should not be an optional component but a fundamental pillar of your global strategy. From cultural adaptation and language customization to regulatory compliance and enhanced customer experience, this process works to connect you to your target audience. In this article, we are discussing the elements of localization you need to include in your market entry strategy and how they can help you achieve your business goals.

What is a market entry strategy?

When you’re launching a product or service into a new market, domestic or international, a market entry strategy is something you can’t do without. This essential document is basically your roadmap to conquering new audiences. It outlines the key steps you’ll take to establish a presence, build awareness, and achieve sales goals.

You need a well-defined strategy to minimize your risks and maximize the chances of success in the new market. Let’s look at the core elements that your strategy should contain:

• Market research and target audience
• Product/service adaptation
• Market entry mode
• Marketing and sales strategy
• Budget and timeline

In the next part, we will be focusing on the product or service adaptation component of a market entry strategy.

Adapting to new markets through localization

Consumers have specific preferences, needs, and cultural nuances that companies must acknowledge to be successful. Localization is the process of adapting a product or service to the specific cultural context of a target market. This means more than just translating text, as you’ll see below. To excel in localization, we recommend you focus on these key points in your market entry strategy.

Understanding local culture

It’s important for companies to understand and respect the local culture. Your products, services, and marketing materials should reflect local traditions and societal norms to avoid cultural faux pas that could alienate potential customers. Let’s look at some examples.

McDonald’s had to adapt its menu in India to include vegetarian options and spices suited to local tastes, such as the Maharaja Mac, which is specifically designed to cater to Indian dietary preferences. Similarly, a fashion brand entering a market where traditional design elements matter might incorporate them into its clothing lines to appeal to local fashion sensibilities.

Language customization

Statistics relating to translation show that 76% of online shoppers have a preference for purchasing products that provide information in their native language and about 87% of consumers express reluctance to make purchases from websites that offer content exclusively in English.

We can safely say that using the local language, including specific dialects, idioms, and expressions, can make your marketing messages resonate with the target audience. By localizing your content and making linguistic adjustments, your messages are not only understood but also appreciated and valued by local consumers.

Customer experience enhancement

To improve customer experience, go even further with your localization by adapting user interfaces for websites and apps to ensure they are intuitive and user-friendly for local users. We’re talking things like using local date formats, measurement units, and currencies, offering local payment methods, and providing customer support in the local language and through preferred local channels. It’s this attention to detail that can make a significant difference in how your brand is perceived and embraced by a new market.

Regulatory compliance

Another aspect of localization that you shouldn’t disregard is regulatory compliance. Each market has its unique set of regulations regarding product standards, labeling, advertising, and more. In consequence, you need to comply with these regulations to avoid issues like costly fines and legal battles.

Marketing and advertising

Localized marketing campaigns are known to be more effective because they directly address the preferences and values of the local audience. Often times, such campaigns use local celebrities or influencers who already have a strong following and trust within the community.

Participating in local events and festivals can also increase brand visibility and resonance. You may have noticed how many brands sponsor local sporting events or music festivals, aligning themselves with activities that are popular and culturally significant.

Running region-specific social media and paid advertising campaigns can further enhance engagement. You can use local media channels and platforms ensures to reach the intended audience in a culturally appropriate manner. And don’t forget about multilingual SEO, which helps your website be easily discovered by users who speak different languages.

Brand perception and identity

How do you shape a positive brand perception? For one, crafting brand stories and identities that resonate with local cultural narratives can make your brand more appealing and relatable. Adopting corporate social responsibility practices that align with local priorities, such as supporting education or environmental initiatives, further enhances a brand’s image. So, as you can see, there are multiple ways businesses can connect more deeply with the local market, and they many revolve around localization.

Start localizing with POEditor

POEditor is a user-friendly translation management platform designed to streamline your localization process. With its collaborative interface, the platform enables teams to work simultaneously on translations, ensuring real-time updates. Its extensive integration capabilities with popular version control systems and a customizable API fit seamlessly into existing workflows.

Notable features include translation memory and glossaries, which help maintain consistency and accuracy across projects. We also offer multiple translation options to choose from. Whether you are a startup or a multinational corporation, our flexible (and affordable, might we add) pricing plans scale with your needs.