Reducing Risks in New Markets with Yellow Tokens
Scenario
A global electronics company, with a strong presence in various countries, was planning to expand its operations into new international markets. The company had a history of success in developed markets but was interested in exploring new opportunities in emerging markets. However, entering a new market presents various risks, especially when it comes to understanding the preferences and behaviors of local consumers. The company needed detailed insights into consumers and competitors to create an effective entry strategy.
Problem
The Business Intelligence team faced the challenge of collecting relevant data about the new target markets. Traditional approaches, such as market surveys and analyses from local consultancies, provided only a limited and often outdated view of consumer preferences and brand perception in different countries. Additionally, cultural barriers and differences in consumer expectations were difficult to capture and understand using conventional methods. The company needed a more dynamic and comprehensive approach to minimize the risks associated with entering new markets.
How Yellow Tokens Helped through Understanding Customer Feedback
The solution came with the implementation of Yellow Tokens. The tool was configured to collect customer feedback from major digital platforms in the target markets, such as Facebook, Instagram, YouTube, X, TikTok, TripAdvisor, and Google My Business, in various languages. Yellow Tokens utilized advanced text analysis algorithms to translate and categorize customer feedback in different languages, allowing for a deep understanding of local consumer perceptions and expectations.
With Yellow Tokens, the Business Intelligence team was able to:
- Collect multilingual feedback from local competitors' customers: the tool consolidated feedback in different languages, eliminating the need for manual translation and allowing for quicker and more accurate analysis.
- Analyze cultural differences and regional preferences: Yellow Tokens helped identify cultural barriers and specific consumer preferences that could impact the acceptance of the company's products and services. For example, in some markets, consumers valued durability and sustainability more, while in others, price and ease of use were more critical factors.
- Understand consumer perceptions of the competition: analyzing feedback allowed the team to comprehend how local competitors were perceived by consumers and identify opportunities to differentiate their own products and services.
- Develop a customized entry strategy: based on the insights obtained, the team was able to adjust the entry strategy for each market, adapting products, communication, and marketing approaches to better meet local expectations and avoid cultural missteps.
How Yellow Tokens Elevated the Role of the Business Intelligence Team
The implementation of Yellow Tokens transformed the role of the Business Intelligence team in the international expansion strategy:
- Greater accuracy in defining entry strategies: with detailed and specific insights into local customer and competitor perceptions, the Business Intelligence team was able to provide much more precise and targeted recommendations for each market.
- Positioning as a strategic partner in international expansion planning: the ability to generate valuable insights into local preferences and cultural barriers increased the importance of the Business Intelligence team in strategic expansion discussions, promoting greater involvement in high-level decisions.
- Direct support to product and marketing teams: Yellow Tokens enabled the Business Intelligence team to provide relevant and practical data to product and marketing teams, facilitating more effective execution of the entry strategy in new markets.
Results Achieved after Utilizing Yellow Tokens
After implementing Yellow Tokens, the company was able to adjust its entry strategy for each new market more effectively, taking into account cultural barriers and local consumer preferences. Marketing campaigns were adapted to reflect the values and priorities of consumers in each country, and products were adjusted to better meet local expectations.
As a result, the company was able to enter new markets with a significantly higher success rate, reducing costs associated with entry errors and increasing consumer acceptance. Customer satisfaction in the new markets improved, reflected in positive feedback and greater brand loyalty. The company also managed to position itself better against local competitors, thanks to a deeper understanding of competitive and cultural dynamics.
The Business Intelligence team was recognized as a critical and strategic function within the company, increasingly involved in high-level discussions and strategic decisions. Yellow Tokens not only improved the team's efficiency but also helped position Business Intelligence as an essential component of the company's business strategy for international expansion.
