When a company like Sanjo wants to grow beyond its home market and sell products in a new country, one of the most important decisions it needs to make is how to enter that foreign market. This decision is called choosing a market entry mode, and it refers to the specific way the company will deliver its products or services to new customers in another country (Kompass, n.d.). There are many different entry modes to choose from, and each one comes with its own advantages and disadvantages. Some entry modes are simple, such as exporting, where a company ships products from its home country to sell abroad. Others, like franchising, licensing, or partnering with local businesses (e.g., joint ventures), are more complex and involve more commitment, cost, and local engagement (LinkedIn, n.d.).
For Sanjo, a Portuguese sneaker brand with over 90 years of heritage and a strong focus on sustainability, quality, and local production, choosing the right market entry mode is crucial for a successful expansion into Canada. Sanjo wants to stay true to its identity while reaching new customers, so it must carefully select a strategy that supports its values while being financially and logistically realistic. The Canadian market is known for its strong consumer base, appreciation for ethically made products, and growing interest in sustainable brands. That’s why we need to choose an entry strategy that balances brand control, affordability, and effective market reach.
It’s important to research different entry modes before making a final decision. This helps companies like Sanjo understand which options are possible, what risks are involved, and how much investment each mode requires. Without proper research, Sanjo could end up choosing a method that’s too risky, too expensive, or not aligned with its values. For example, franchising might give fast market access, but could risk losing brand control, while direct exporting might be slower but allows Sanjo to keep full control of the product and messaging. By exploring and comparing each method, we can find the one that offers the best balance between market presence and brand integrity.
In addition to choosing the right entry mode, it is equally important for Sanjo to create a strong market entry strategy. A market entry strategy is a detailed plan that outlines how the brand will enter and grow in a new market, from understanding local customers to setting goals, managing logistics, promoting products, and tracking results. Without a well-thought-out strategy, even the best entry mode can fail. For Sanjo, this means not only deciding how to sell shoes in Canada, but also knowing which customer segments to target, how to price the products, how to compete with existing brands, and how to build trust with local consumers.
According to Creately (n.d.), a solid market entry strategy should include several key elements:
Market research: For Sanjo, this means understanding Canadian consumer preferences, such as their interest in locally made and sustainable products.
Clear objectives: Sanjo must define its goals in Canada—whether that’s increasing sales, testing the market, or building brand awareness.
Target audience analysis: Who in Canada would buy Sanjo sneakers? Are they young, eco-conscious consumers? Trend followers? We need to find that out.
Competitive analysis: Sanjo must know who the competitors are in Canada (e.g., Veja, Allbirds, or local brands) and how it can offer something different.
Entry method selection: Based on resources and goals, we will help Sanjo choose the best entry method (e.g., exporting, e-commerce, partnerships).
Marketing and sales strategy: How will Sanjo tell its story in Canada? Through social media, influencers, or online ads?
Financial plan: Budgeting for logistics, shipping, marketing, and possible partnerships.
Legal compliance: Ensuring that Sanjo follows Canadian product and labeling regulations.
Local relationships: Building trust with local suppliers, retailers, or ambassadors.
Performance metrics: Measuring success through sales numbers, website traffic, or customer feedback.
A strategy like this helps Sanjo enter the Canadian market prepared, with clear direction, and ensures that every decision supports the brand’s mission and potential for growth. Our goal is to recommend the entry strategy that gives Sanjo the best chance of success, allowing it to reach new customers in Canada while staying true to what makes it special.