Specifically tailored market access strategy opens door to largest spice market for an Indian spice major.Title Description
Sathguru developed specifically tailored market access and implementation strategy for spice division of a large Indian FMCG company opening door to US market, the largest spices and condiments market in the world.Challenge/Problem statement/Situation analysis
Our client, an integrated Indian processor and exporter of spices and known for their extensive farmer linkages and fair trade practices, is a leading exporter of spices to Europe given their superior product quality and compliance to stringent food safety norms. Despite their decent market presence in Europe, client has negligible market presence in US and was finding it difficult to penetrate lucrative but highly competitive US market. Company sought assistance from Sathguru to devise a specific tailored market access and implementation strategy that will enable them to build strong presence in the US market.Scope
The scope of Sathguru’s engagement included:
- Detailed analysis of US spice market and identify segments where client should focus for market access and growth.
- Devise a specific and tailored strategy and market relevant product mix to penetrate identified market segments and consolidate its presence in the US market.
- Develop specific mid-term operating plan for product development and market access including elements related to technology access and adoption, infrastructure and Human resource development.
The US market offers multiple opportunities and challenges for spice companies. Sathguru followed an internal-external assessment framework to analyze client’s strength from US market perspective and identify synergistic market access opportunities. This approach helped develop, specific and tailored strategy to leverage client’s strength to enter US market with minimal investment in product and market development.
To achieve this, Sathguru:
- Conducted a detailed internal capability assessment to evaluate client’s competency in areas of farm end connectivity, production, production development and marketing and identify its unique strengths.
- Analyzed US spice and condiment value chain to identify the key market segments; major customers and competitors operating in each of the market segment; and their market potential.
- Analyzed critical requisites and expectations of customers, capabilities and value proposition offered by existing market players to identify areas of expectation-delivery gaps in each of the market segment.
- Developed an opportunity-competency matrix to analyze the attractiveness of market segments given the client’s USP and help them select the segment that generates maximum value for their investment.
- Created linkages with key players in recommended market segments and worked with the client to develop mutually beneficial business models for both the client and its potential customers.
Sathguru recommended a specific and tailored market access and implementation strategy to the client to build and strengthen presence in US market:
- Sathguru recommended specific market segment and potential customers within the segments from immediate to long term perspective.
- Sathguru identified key strengths of the client that can be leveraged as unique value proposition and recommended the client to use the same for approaching potential customers.
- Sathguru recommended a product portfolio suitable to the market needs and developed a time frame based product portfolio progression plan.
Sathguru identified research and development, technology and manufacturing pre-requisites critical for long term success in US market and laid down an action plan to build capabilities on these elements.Impact/Result/Client Benefit
Based on recommendations by Sathguru, an internal plan to access US market was presented by spice division to the company management and was approved for implementation.