Mapfry Team
upon
Jan 7, 2025
Be the first to arrive

Have you ever heard the saying Do oxen that arrive first drink the cleanest water?

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It pretty much sums up what happens when you enter new markets early.

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When a new opportunity emerges, whether it's a promising neighborhood, an emerging technology, or a cultural trend, those who arrive first encounter less competition, more chances to stand out in an open environment to explore.

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But to be that “ox that comes first”, luck is not enough.

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Strategy is needed, and that's where the Geomarketing It is an essential tool for mapping, understanding and conquering new markets.

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New markets

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Emerging markets can be compared to newly built cities.

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In the beginning, they are open spaces with few rules and many possibilities.

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For companies, this means the chance to shape interactions, build networks, and even define the rules of the game.

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Geomarketing works as a map for these “cities”, helping you answer fundamental questions:

  • Where are the opportunities?
  • Who is already there?
  • How can I position myself to be relevant?

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For example, consider the arrival of large supermarket chains in interior cities.

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You know that they used data to identify population growth, changes in purchasing power, and gaps in the market came out ahead, winning over consumers before the competition.

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Now it's your turn to do the same.

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What is Geomarketing and why does it matter?

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Geomarketing is the use of geospatial data to create business strategies, combining location analysis, demographic, and behavioral data to answer:

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‍Where is it worth investing?

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Intensity maps

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They identify areas with a high density of consumers or poorly met needs.

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Competition analysis

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It helps to understand who is already in the region and what their weaknesses are.

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Demand forecasting

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It crosses historical data and current trends to predict growth potential.

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Brand that comes first...

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  • Establish identity: Being the first brand in a new region creates a strong bond with local consumers.
  • Build strategic networks: You can form partnerships with regional stakeholders before competitors realize market potential.
  • Gather valuable information: Direct observation of local needs allows for quick adjustments to the offer.

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Practical example: Giraffes and their market strategy

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The Giraffas chain, founded in 1981 in Brasilia, has established itself as a genuinely Brazilian brand in the fast-food segment.

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Although smaller compared to giants like McDonald's, Burger King, and Bob's, Giraffas found its niche by offering a menu that combines fast-food classics with traditional Brazilian cuisine.

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With approximately 400 establishments spread across the country, the network seeks different strategies to expand its presence, such as focusing on cities with less than 50,000 inhabitants.

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Adapting the menu to the regional palate is a competitive advantage. By offering dishes such as traditional rice and beans and grilled options, the chain meets local preferences, something that is not always a priority for multinationals in the sector.

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Despite its smaller size compared to McDonald's, Burger King, and Bob's, Giraffas has adopted an intelligent strategy when focusing its efforts on small cities.

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caution

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Not every open market is good, those who arrive early are also at risk:

  • Unexplored market: The public may not be ready for your offer
  • Uncertain investment: Entering early requires more capital and may not generate immediate return

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Strategies for drinking the cleanest water

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If you want to be the pioneer taking advantage of the best of a new market, you need a plan.

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Look for signs of growth

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Growing secondary cities? New cultural poles emerging?

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Use data to identify these patterns before competitors.

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Focus on micro-markets

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Sometimes the big opportunity lies in specific niches.

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An up-and-coming neighborhood or underserved consumer segment may be the gateway.

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Create a local connection

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Use personalized campaigns to engage specific communities.

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Be the “neighbor” before being the “big player”.

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Keep your eyes on the future

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Never settle down.

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What's new today will be the old tomorrow, keep monitoring emerging markets.

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