In 2014, at the Ukrainian pet food company Kormotech, we decided to expand into the markets of Poland, Romania, Lithuania and Latvia. We were already operating in Moldova, so other markets seemed within reach. After some brief market research, we developed a three-year strategy, created a plan, approved the budget and launched.
A year later, the entire three-year budget had been spent, yet sales reached only one-third of our target. We underestimated the fierce competition and price pressure we’d encounter along with other key factors.
Today, Kormotech ranks among the world’s top 55 pet food manufacturers, with sales in 50 countries, including Poland, where we successfully returned after our initial failure having done our homework. In this article, I’ll share what we learned about adapting a B2B marketing strategy for each new market – and how to scale while avoiding common mistakes.
Market Development Stage
If a country has only one or two existing producers, you can enter with a basic product and gradually build sales. This won’t work in a developed market. Competitors have already shaped their offerings, covering all segments from economy to super-premium.
To establish yourself in a developed market, you need to create a value proposition that competitors can’t match. This could be a better price-to-quality ratio, faster delivery, reduced storage costs or more convenient return conditions.
Competition Level
In highly competitive markets, a new brand has almost no chance without truly innovative products. If you don’t have a breakthrough innovation to showcase, try identifying underserved micro-segments within the market.
When we scaled into the U.S., we faced an extremely saturated market, but one that is heavily focused on dry food and canned products. Only a few brands produce wet food in pouches. Kormotech, on the other hand, has extensive expertise and a broad product line in this category. That gave us the opportunity to occupy a niche and establish a foothold in a massive market.
Distribution Channels
Very few new brands manage to enter large retail chains right away. It’s the channel with the highest entry barrier. Based on difficulty level, the channels rank as follows: major retail chains, then local chains, followed by independent stores, and finally e-commerce and D2C.
Many pet food producers enter new markets through independent stores. However, this channel attracts all market entrants, and many brands promote products with strong advantages. This is an important factor to keep in mind when planning your go-to-market strategy.
How to Research a New Market: Three Stages
Start with desk research – Your first market overview can be developed without financial investment through online research. Understand whether the market is growing or shrinking, what the product portfolio and price segments look like, who the main consumers are, and which sales channels are used.
Attend industry exhibitions – Before entering a new market, visit local industry exhibitions. This is your chance to showcase your company, speak with potential clients, and compare yourself to competitors. These events can help you understand whether your product meets local standards or needs adaptation, and how competitors present themselves.
Yes, exhibitions can be expensive, and contracts are rarely signed on the spot, but participation is essential to get noticed by potential B2B partners.
Validate your findings “in the field” – You can’t assess market dynamics without in-depth interviews. The most valuable insights come from salespeople and category managers. They know which products sell best, what frustrates consumers, and distributor specifics. By visiting 20 to 30 retail locations, you can get a real picture of the market and understand the value you can offer to B2B partners.
During our first expansion into Poland, we skipped this step – and failed. In Romania, however, we began with field visits and immediately gathered useful information. We discovered that in mountainous regions bordering Ukraine, product delivery was challenging. Romanian distributors didn’t see much potential in this area, so they were hesitant to invest in logistics. We realized we could offer direct deliveries to the region, reducing their logistics and storage costs. Using these insights, we built our partner network in Romania accordingly.
If the Strategy Fails
To adapt a strategy for a new market, you need at least three specialists: a researcher who conducts market interviews, an analyst who examines data and prepares insights, and a marketing manager who develops value propositions. The CMO and commercial team then build the value chain and adjust products accordingly. In the first year, investments usually don’t pay off, so plan a two- to three-year strategy from the outset.
Even a perfectly prepared marketing strategy is just an MVP. During implementation, something is bound to go wrong. You will need to identify the causes and adjust the plan. This happened at Kormotech when we had to carry out a full brand relaunch due to critical feedback from Polish partners.
Remember, a strategy that works in one market may fail entirely in another, even if they seem similar. That’s why a careful, tailored approach is essential for each market.
