This opinion piece was contributed by Rostyslav Vovk, chairman of the board and co-owner of Kormotech.
When expanding your brand into a new market, don't anticipate immediate success — be prepared for challenges along the way. A product that enjoys popularity in your domestic market might unexpectedly become unacceptable elsewhere. However, if you thoroughly understand the target market, your product stands an excellent chance of success.
Cat and dog food produced by Kormotech is available in 51 countries. Over a decade of international business experience, I've learned valuable lessons — not only from successes but also by identifying growth opportunities within setbacks. Let me break down the five critical steps that can help you successfully introduce your brand into new markets.
Step 1: Conduct deep market research and understanding
Simply having a high-quality product isn't enough — a deep understanding of the new country's market dynamics and consumer preferences is essential. When crafting a go-to-market strategy, focus on these key factors:
- Market volume – the annual consumption of pet food.
- Market segmentation – the proportion of the market dedicated to cats versus dogs.
- Distribution channels – the most common places consumers purchase pet food.
- Local versus imported brands – the degree of consumer trust in domestic versus foreign brands.
- Consumer purchasing behavior – primary factors influencing buying decisions, such as pricing, product composition, or brand reputation.
Category preferences vary significantly from country to country. Our research indicates that French and British consumers prefer super-premium pet food, while in Romania, Poland, and Slovakia, standard and premium foods are more in demand. In the United States, consumers typically focus more on what ingredients are excluded from the diet rather than what beneficial ingredients it contains. American consumers are particularly receptive to labeling such as "No Corn," "No Chicken," or the increasingly popular "Grain Free."
When assessing market potential in a new country, remember that analytical reports can differ significantly. For example, data provided by Euromonitor and Statista can sometimes vary two- or threefold due to differences in data collection methods, analytical approaches, or coverage limited to certain sales channels. Additionally, smaller markets often lack comprehensive analysis. For this reason, it's advisable to schedule several on-site market visits to gain a clear and accurate picture of local conditions.
Step 2: Select your market entry strategy
You have two main options: developing your own brand or producing private-label products. Your choice should depend on your business objectives and available resources.
- Brand-building strategy: Ideal for strategically important markets. Although it demands significant investment, patience, and systematic marketing efforts, it enables full control over brand positioning and can help establish a stable market presence.
- Private Label manufacturing: Enables faster entry into a new market and rapid sales growth without substantial promotional costs, as marketing responsibilities typically fall on the retailer or distributor.
We use a combined approach, starting collaboration with partners through Private Label projects. Once partners recognize and trust our reliability and quality as a supplier, we then introduce them to our own branded products.
Step 3: Adapt your product to local market preferences
A successful product in one market doesn't necessarily guarantee success in another. Through thorough market analysis, you'll learn whether your product matches local consumer expectations. If it doesn't, be prepared to adjust accordingly.
Ten years ago, Kormotech launched three brands on the Polish market, including our super-premium brand, Optimeal. We quickly realized that Optimeal wasn't competitive enough within the European market. Faced with the decision to either lower the price and enter a less premium segment or upgrade the brand to remain competitive, we chose the latter. We revised the recipe, fully rebranded the product, and retained only the original brand name.
When entering the U.S. market, we noticed pet owners favored wet pet food without carrageenan — a natural thickening agent typically used to create a jelly texture. In response, our specialists at Kormotech collaborated with European partners to develop an alternative recipe, successfully producing jelly-based pet food without carrageenan.
Step 4: Select the most effective sales channels
Consumer perception of your brand strongly depends on your chosen sales channels. Before launching in a new market, clearly identify whether your products are best suited for supermarkets, specialty pet stores, or online marketplaces. Each sales channel attracts different types of consumers, who have distinct expectations regarding product offerings.
For instance, in Portugal, super-premium pet food is available through both pet specialty stores and supermarkets. Conversely, in Poland, pet specialty stores refuse to stock products found in supermarkets — even premium ones — because such items are perceived as mass-market. Instead, pet shops prefer exclusive, niche brands.
Distribution influences not only product availability but also brand perception. Therefore, choose sales channels that reflect and support your brand's positioning strategy.
Step 5: Leverage local expertise and build regional teams
Consulting with local experts and hiring professionals from the region can significantly enhance your market entry. Their knowledge helps you navigate cultural nuances and reduces the risk of errors in marketing, business communications, or product selection.
For instance, when Kormotech entered the Danish market, we planned to introduce a wet food product featuring rabbit meat in white sauce. Fortunately, our local distributor alerted us to the fact that rabbit-based products are culturally unacceptable in Denmark, as rabbits are widely beloved pets. As a result, we promptly removed this item from our product lineup.
Sending your home-market team into a new country often results in them applying familiar strategies from your domestic market. However, this method rarely works if the new market has significantly different consumer habits. For successful partnerships, regulatory compliance, and effective logistics, building a strong local team is essential.
Patience and systematic effort are essential when entering new markets. Although investments in market expansion seldom yield immediate returns, they deliver substantial long-term benefits. Companies that manage to grasp the intricacies of new markets, while maintaining a careful balance between global strategy and local adaptation, will not only increase their sales but also build a strong foundation for continued growth.
Kormotech
