Before entering a new market, businesses need more than just ambition – they need answers. Market research plays a central role in delivering those answers by equipping organizations with reliable, data-backed insight into opportunities and risks.

Without proper research, companies risk misjudging demand, misunderstanding customer behavior, or overlooking a strong competitor. These oversights can lead to failed launches and wasted resources. With high stakes involved, market research becomes a necessary part of any feasibility study for new market expansion.

Supporting Smarter Market Entry Choices

Feasibility studies are designed to help organizations determine how realistic and profitable it is to enter a particular market. Research provides the foundation for these evaluations, uncovering key factors like:

• Market size and growth potential – Is the opportunity large enough to justify your investment?
• Target audience needs and behaviors – Does your product or service meet a real need?
• Cultural considerations – Will your brand resonate within the cultural context of this new region or customer group?
• Competitive analysis – Who is already serving this market, and how can you differentiate yourself?

These factors form the backbone of any responsible go-to-market strategy using research data. Instead of relying on assumptions or guesswork, businesses can move forward with clarity and precision.

Reducing Risk, Increasing Confidence

Some of the most common business pitfalls happen when entering unfamiliar markets. For instance, a brand may underestimate how different consumer values are in a new region, or overestimate how easy it will be to gain visibility and share. Market research helps surface these challenges early on. This allows companies to adapt products, pricing, messaging, or sales models accordingly – ideally before they spend heavily on a launch.

Real Applications in Market Feasibility Studies

Some typical research activities used during market entry planning include:

• Conducting a market scan to assess key trends and industry outlook
• Surveying prospective customers to validate product demand
• Mapping the competitive landscape to identify gaps or saturation
• Evaluating cultural fit for messaging, branding, and marketing

By embedding insights early in the decision-making process, businesses improve their odds of launching successfully – with strategies that are truly aligned with market realities.

TAM – or Total Addressable Market – is one of the most important metrics in determining whether a market opportunity is worth pursuing. In simple terms, TAM tells you how big the market could be if you captured 100% of the demand for your product or service within a given segment.

As part of a market entry feasibility study, TAM sizing helps you understand the upper limit of potential revenue. It’s not a forecast, but a critical baseline that sets the stage for further evaluation.

What Is TAM in Market Research?

Let’s say your company sells plant-based snacks and is considering expansion into Canada. The TAM would include the total sales of all plant-based snacks across all consumer channels in that country. This figure might be derived from industry databases, market trend reports, or consumer purchasing behavior studies.

TAM is often one piece of a broader framework that includes:

• SAM (Serviceable Available Market) – the portion of the TAM your product or service can realistically serve, based on your geographic or product-specific capabilities
• SOM (Serviceable Obtainable Market) – the segment you can realistically capture in the short to mid term, considering your resources, competition, and brand awareness

Understanding these layers helps you prioritize opportunities and avoid overestimating your market potential.

Why TAM Sizing Matters for Market Entry

When entering a new market, you need to align your investment with the potential payoff. TAM sizing helps answer questions like:

• Is the market large enough to support our growth goals?
• How does the opportunity compare with other potential expansion initiatives?
• Are there niche segments within the TAM that are underserved?

For example, if the global TAM for gluten-free products is $10B and your team is exploring three different countries, you might use local TAM figures to compare which market offers the most opportunity relative to your go-to-market costs.

How to Evaluate New Market Opportunities Through TAM

Proper TAM analysis typically includes:

• Gathering secondary data from industry sources and trend reports
• Estimating population size and relevant buyer personas within the target market
• Layering in data from competitor activity and market share estimates

Partnering with an experienced insights team, such as those available through SIVO’s full-service research offerings or our On Demand Talent experts, can help ensure your TAM analysis is grounded in solid data – not inflated assumptions.

Ultimately, TAM sizing offers more than just a number. It provides context – helping you build a practical, prioritized market entry strategy using research data you can trust.

Why Cultural Fit Matters in Market Entry

When companies consider expanding into a new region or country, understanding the cultural landscape is just as important as analyzing market potential. Cultural compatibility can influence everything from how a product is received to how effectively marketing messages resonate with local consumers. That’s why cultural considerations in market research play a vital role in any feasibility study.

How Market Research Evaluates Cultural Alignment

To evaluate whether your brand, product, or service aligns with local norms, values, and behaviors, market researchers often use a mix of qualitative methods such as focus groups and in-depth interviews. These tools provide rich insights into consumer habits, social expectations, and emotional drivers that influence purchasing decisions.

For example, a food product that is popular among U.S. consumers may need to be reformulated or repositioned to suit the preferences of customers in Southeast Asia. Without immersing in the local culture and consumer mindset, such differences may not be obvious until after launch – when it could be too late.

Key Questions Cultural Research Helps Answer

• How do local consumers perceive your brand or product category?
• Are there cultural taboos or norms that could impact usage or positioning?
• What messaging and visuals feel authentic versus out-of-touch or generic?
• Do local buyers prefer local versus global brands in your category?

Real-World Example

Consider a global skincare brand entering the Middle East. Through qualitative cultural research, they discovered that beauty routines there emphasized fragrance-free, halal-certified products. Without this insight, the brand risked launching with irrelevant product lines and off-target messaging. The cultural scan helped them adjust their product formulations and advertising approach accordingly.

The Value for Feasibility Studies

Feasibility studies for new market expansion that ignore cultural fit often underestimate the true barriers to entry. Market research helps de-risk decisions by identifying potential disconnects early on. This allows leaders to proactively adapt their go-to-market strategy using insights to enter a new market more effectively and respectfully.

Understanding and honoring the cultural lens of your target market is not just good ethics – it's good business.

Looking Beyond Demand: Understanding the Market Landscape

After evaluating market demand and cultural considerations, the next step in a market entry strategy is understanding who you’re up against. Competitive analysis for market entry sheds light on the existing players, their offerings, market share, pricing, and consumer perceptions – all of which help you define your position in the new environment.

What Is Competitive Analysis in Market Research?

Competitive analysis involves gathering data on direct and indirect competitors within your target market. This includes reviewing product features, pricing models, marketing strategies, distribution channels, and customer sentiment. The goal isn’t just to mimic competitors, but to identify gaps and opportunities you can uniquely fill.

Competitive Data That Feeds Your Feasibility Study

• Who are the top players and what’s their market share?
• What product or service differentiation do they offer?
• Are consumers satisfied with current options? What’s missing?
• How are these competitors positioning themselves across marketing channels?

Incorporating this information into your feasibility study helps assess your potential to gain traction and how crowded the market may be.

TAM Sizing Meets Market Reality

Once you calculate your Total Addressable Market (TAM), a strong competitive analysis helps you evaluate how much demand is actually accessible in practice. For instance, if a few entrenched players dominate 90% of your target category, your initial expectations might need to be refined or your strategy adjusted for niche entry or innovation-led disruption.

Case in Point

Imagine a new streaming service planning expansion into an international market. Market research reveals a saturated market with three dominant platforms offering localized content and bundled mobile deals. Through a competitive scan, the company identifies a gap – none of them prioritize educational content for young adults. With that insight, the business pivots to this unserved segment with specialized features, building a strong foothold in a competitive landscape.

Competitive analysis ensures a grounded, data-driven picture of your real opportunity. Instead of entering a market based on assumptions, you’re entering with clarity – and a plan.

Why Speed and Flexibility Matter in Expansion Decisions

Evaluating a new market opportunity often comes with time-sensitive decisions. Whether you're gauging regional TAM, anticipating cultural hurdles, or conducting a baseline market scan, feasibility studies benefit from fast, reliable data. But what if your internal Consumer Insights team is already stretched – or lacks local expertise?

This is where On Demand Talent becomes a strategic asset.

What Is On Demand Talent?

On Demand Talent refers to seasoned, fractional insights professionals who can quickly plug into your team when needed. At SIVO Insights, our On Demand Talent network provides expert researchers, analysts, and strategists who are ready to drive feasibility research forward – without the cost or timeline of traditional hiring or full-service engagements.

How On Demand Talent Powers Feasibility Studies

• Rapid access to top-tier insights professionals, including category specialists and local market experts
• Scalable support for any project size, from quick-turn TAM sizing to full-scale competitive reviews
• Flexibility to cover gaps due to transitions, leaves, or unexpected demand

Unlike general freelance platforms, our talent is curated and vetted, ensuring seamless integration and immediate value. Whether you need someone to run qualitative interviews on cultural preferences or analyze international market trends for a new product launch, you’ll find specialized support without the delay.

Putting Agility Into Action

Let’s say your company is exploring several international markets at once. Instead of over-hiring or relying solely on internal staff, you deploy On Demand researchers to simultaneously conduct TAM sizing and competitor scans in multiple regions. This parallel approach shrinks timelines and improves decision speed across functions.

It’s a smart way to build a comprehensive feasibility study, tailored to your new market strategy – while maintaining flexibility and cost-efficiency.

With On Demand Talent, your feasibility research doesn’t have to wait. You move faster, stay focused, and make confident, insight-backed decisions.