Tailored India market entry strategy with India specific customized product range drives rapid growth for a global food company.Title Description
Over a multi-year effort, Sathguru helped a global food company access Indian market by developing India specific customized product offerings and devising unique manufacturing and product distribution strategy that helped the company gain leadership position and significant market share in a short span.Challenge/Problem statement/Situation analysis
Our client, known worldwide for its premium bakery products and ingredients was looking at access to emerging markets. India was an obvious choice at that point in time the market for premium bakery products was not well developed in India and their current product range and business model will not make a good business proposition in Indian markets. However given the long term potential, they wanted to establish presence in India. Company sought assistance from Sathguru to devise an India specific market access strategy that would provide blue print for product introduction, operations, distribution and market outreach.Scope
The scope of Sathguru’s engagement included:
- Develop India specific product portfolio based on their strengths and existing product line.
- Create India centric operating model for product development and commercial scale manufacturing.
- Develop a specific marketing and distribution strategy relevant to the Indian context.
To achieve project objectives, Sathguru:a) Conducted detailed market and industry assessment to:
- Identify and analyze major competitors operating in the bakery product segment.
- Assess the product development, manufacturing and pricing strategy of major competitors.
- Map product and consumer trends with significant focus on emerging scenarios.
c) Developed a framework for evaluation and selection of contract manufacturers and guidelines to ensure adherence of quality standards.
d) Analyzed various product distribution channels to develop a model that aligned with the proposed product mix and that will optimizes product reach.
- Sathguru recommended product range that was focused on providing aspirational and nutritional solutions to various customer segments including mass market bottom of the pyramid segment.
- Sathguru recommended cost effective operating model for India based on out sourced product manufacturing and in-house product development.
- Sathguru recommended contract manufacturers with capabilities to follow food safety and product quality standards established by the client. Sathguru also suggested conducting periodic third party quality audits for continuous evaluation of manufacturers and developed guidelines for the same.
- Sathguru developed specific product distribution models for each of the channels and recommended high strategic focus on base of pyramid consumer segment for optimized operations.
Sathguru’s assistance enabled the client to establish a strong market presence in India and gain market share from existing market leaders before their strategic exit from bakery segment globally.