Planning a market entry can be daunting. It requires a deep understanding of the current market dynamics, including the competitive forces, barriers to entry, trade environment, and so on. Without these insights, navigating the business environment can be extremely challenging and can set the business up for failure.
Facing a similar challenge was a leading baby-care product manufacturer based in the Middle East that wanted to explore and assess the Indian market opportunity. To bolster its odds of succeeding in the new market, it was in search of a trusted market intelligence company in India that could conduct a comprehensive market entry research study.
Business challenge
Entering a new market can be daunting. The challenges are real, especially when entering a new geography, which does not share the same market dynamics, language, culture, laws and regulations as yours. Overcoming them requires a deep understanding of the market and the potential for growth, recognizing any untapped opportunities, identifying a value proposition, knowing when to enter and how, whom to partner with, and so on. Facing a similar challenge was a leading baby care product manufacturer in Turkey that wanted to explore and assess the Indian market opportunity. In order to make the right market entry decisions, it was in search of a market intelligence provider that would help in laying out a successful go-to-market strategy for its baby care products.
Solution
The client partnered with Netscribes, who proposed a phased approach for the study. This
included:
- Analyzing the Indian baby care market size and growth
- Recommending the best model to enter the Indian market
- Identifying the key potential partners (importers, distributors) for baby care products
- Assessing which product to launch first and at what price
Netscribes interviewed over 300 respondents across major Indian cities – Mumbai, New Delhi, Punjab, Bangalore, and Kolkata. The sample included industry experts, manufacturers, importers, distributors and retailers. The survey responses were used during the various phases of the study.
a. Analyzing the Indian baby care market size and growth
Based on primary and secondary research data, Netscribes analyzed the baby care products market in India to identify the market drivers and trends of the industry and estimate the size of the demand and supply. By triangulating the demand and supply side market size, it then estimated the Compound Annual Growth Rate (CAGR) of the baby products market for the next five years. It further segmented the market and estimated the market size of baby care products by type and application.
b. Recommending the best model to enter the Indian market
To identify the best route to enter the Indian market, Netscribes assessed the competitors and previous entries by other international players. By evaluating the advantages and disadvantages of various entry strategies, Netscribes concluded that a direct import via a distributor partner would be the most suitable route for the client to enter the Indian market.
c. Identification of potential partners:
Netscribes helped the client to identify the right partners using a three stage methodology-
-
- Longlisting – We identified a universe of over 250 market players, including sales, marketing and distribution companies that deal in baby care products.
- Shortlisting – We then classified a list of potential partners based on criteria such as the type of business, web presence, type of baby products, and so on. Netscribes applied the criteria in stages to ensure only those partners who met the most basic criteria would be evaluated further.
- Prioritizing – Using a proprietary index and weighting methodology, Netscribes
prioritized a list of companies with high potential.
We further provided a descriptive rationale for each target opportunity based on an analysis of the company financials, value proposition, and service offerings. Finally, Netscribes shared a list of recommended partners based on the opportunity they provided.
d. Product launch strategy
Netscribes benchmarked the client’s existing products across various parameters such as price, novelty, unique selling proposition, and so on. Based on select parameters, Netscribes recommended a few products that the client should launch first.
Benefit
Through Netscribes’ research insights, the client was able to get a better understanding of the Indian baby product market and identify the untapped opportunities it had to offer. They were able to identify and recruit the right importer and distributor to ensure a smooth entry into the new market and define a product strategy.
